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:

Logos

A symbol or other design adopted by an organization to identify its products, uniform, vehicles, etc.

Mental Reasoning

The cognitive process of drawing conclusions, solving problems, or making decisions based on logic.

Logos

An appeal to logic, referring to persuasive communication that employs reasoning and evidence.

Survival Needs

Basic requirements necessary for individuals to maintain life, such as food, water, shelter, and safety.