David Increases the Number of Companies in Which He Holds

question 18

Multiple Choice

David increases the number of companies in which he holds stocks.

• A)This reduces risk's standard deviation and firm-specific risk.
• B)This reduces risk's standard deviation and market risk.
• C)This raises market risk,but lowers firm-specific risk.What happens to overall risk is unclear.
• D)This raises firm-specific risk,but lowers market risk.What happens to overall risk is unclear.

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Definitions:

Nigrostriatal Dopamine System

A pathway in the brain involved in the control of movement; degeneration of this system is associated with Parkinson's disease.

Acetylcholine System

A neurotransmitter system that plays a critical role in muscle activation, memory, and attention.

Norepinephrine System

A component of the brain's neurotransmitter systems that influences attention, emotion, and bodily responses to stress and physical activity.

Tourette Syndrome

A neurological disorder characterized by repetitive, involuntary movements and vocalizations called tics, often emerging in childhood.