An Increase in the Number of Corporations in a Portfolio

question 62

Multiple Choice

An increase in the number of corporations in a portfolio from 110 to 120 reduces

• A)market risk by more than an increase from 1 to 10.
• B)market risk by less than an increase from 1 to 10.
• C)firm-specific risk by more than an increase from 1 to 10.
• D)firm-specific risk by less than an increase from 1 to 10.

---

Definitions:

Generalized Other

A concept in sociology that refers to the general notion that a person has of the common expectations and attitudes prevalent within the broader society.

Social Patterns

Describes the recurring behaviors, customs, and norms observed within societies that influence social interactions and relationships.

Agent of Socialization

Individuals, groups, or institutions that play a significant role in integrating people into social life by teaching social norms and cultural values.

Sociologists

Scholars or practitioners in sociology, the study of society, social institutions, and social relationships.