Other Things the Same,as the Number of Stocks in a Portfolio

question 116

Multiple Choice

Other things the same,as the number of stocks in a portfolio rises,

• A)risk increases and the standard deviation of the return rises.
• B)risk increases and the standard deviation of the return falls.
• C)risk decreases and the standard deviation of the return rises.
• D)risk decreases and the standard deviation of the return falls.

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Definitions:

Money Income

Money income refers to the total amount of monetary earnings received by an individual or household, including wages, salaries, bonuses, and income from investments.

Prices

Monetary values assigned to goods and services that reflect their worth or what consumers are willing to pay.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a fixed amount of income.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, benefits, and income from investments.