If You Were to Completely Diversify Your Portfolio by Purchasing

question 70

True/False

If you were to completely diversify your portfolio by purchasing a portion of every asset in the investment universe, then the expected return of your portfolio is equal to the risk-free rate.

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Definitions:

Natural Selection

The process through which traits that enhance survival and reproduction become more common in successive generations of a population.

Human Genome

The complete set of nucleic acid sequences for humans, encoded as DNA within the 23 chromosome pairs in cell nuclei and in a small DNA molecule found within individual mitochondria.

Genetic Profile

A summary of an individual's unique genetic characteristics, often used for identification or assessing disease risk.

Temperaments

Inherent personality traits and dispositions that influence how individuals react to their environment from infancy through adulthood.