The Risk of a Portfolio

question 69

Multiple Choice

The risk of a portfolio

• A)increases as the number of stocks in the portfolio increases.
• B)is usually measured using a statistic called the standard diversification.
• C)is positively related to the average return of the portfolio.
• D)bears no relationship to the average return of the portfolio.

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Definitions:

Judge

An official appointed to decide cases in a court of law and to administer justice according to the law.

Majority

More than half of a given group or quantity; often used to describe the age at which a person is legally acknowledged as an adult.

Concurring Opinion

An additional written opinion by a judge who agrees with the decision of the court but for different reasons than those expressed in the majority opinion.

Majority Opinion

The judicial opinion agreed to by more than half of the members of a court, setting out the decision of the court and an explanation of the rationale behind the court's decision.