As the Number of Stocks in a Person's Portfolio Increases

question 28

Multiple Choice

As the number of stocks in a person's portfolio increases,

• A)the risk of the portfolio increases,as indicated by the increasing value of the standard deviation of the portfolio.
• B)the risk of the portfolio increases,as indicated by the decreasing value of the standard deviation of the portfolio.
• C)the risk of the portfolio decreases,as indicated by the increasing value of the standard deviation of the portfolio.
• D)the risk of the portfolio decreases,as indicated by the decreasing value of the standard deviation of the portfolio.

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Definitions:

Stereotyping

Involves making generalized beliefs or assumptions about the characteristics of all members of a group, based on simplified perceptions or experiences.

Multiculturalism

The presence and coexistence of diverse cultural groups in a society, celebrated for the enrichment it brings.

Global-Mindset

A global-mindset is the ability to appreciate and influence individuals, businesses, and cultures in a global context.

Global Mindset

The ability to appreciate and navigate diverse cultures, perspectives, and practices in global business environments.