The Largest Reduction in a Portfolio's Risk Is Achieved When

question 126

Multiple Choice

The largest reduction in a portfolio's risk is achieved when the number of stocks in the portfolio is increased from

• A)80 to 100.
• B)40 to 80.
• C)10 to 20.
• D)1 to 10.

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Definitions:

Marketers

Professionals who work to promote products, services, or brands to increase their visibility and sales.

Rokeach Value Survey

A psychological assessment tool developed by Milton Rokeach for measuring individual's value systems, consisting of two sets of values—terminal (end goal) values and instrumental (mode of behavior) values.

Terminal Values

Long-term life goals or desirable end-states that individuals strive to achieve, reflecting what is most important to them in life.

Consumption-Specific Values

Values that guide an individual's behavior and choices specifically in the context of consuming goods and services.