As the Number of Securities in a Portfolio Increases, the Amount

question 6

Multiple Choice

As the number of securities in a portfolio increases, the amount of systematic risk

• A) remains constant.
• B) decreases.
• C) increases.
• D) changes.
• E) none of the above.

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Definitions:

Avoid the Risk

A risk management strategy involving actions to prevent exposure to a risk, often by choosing not to engage in an activity.

High Rate of Failure

A situation where there is a significant percentage of attempts or endeavors that do not succeed, often used in the context of startups or new projects.