Which of the Following Statements Is CORRECT

question 54

Multiple Choice

Which of the following statements is CORRECT?

• A) A stock's beta is less relevant as a measure of risk to an investor with a well-diversified portfolio than to an investor who holds only that one stock.
• B) If an investor buys enough stocks,he or she can,through diversification,eliminate all of the diversifiable risk inherent in owning stocks.Therefore,if a portfolio contained all publicly traded stocks,it would be essentially riskless.
• C) The required return on a firm's common stock is,in theory,determined solely by its market risk.If the market risk is known,and if that risk is expected to remain constant,then no other information is required to specify the firm's required return.
• D) Portfolio diversification reduces the variability of returns (as measured by the standard deviation)of each individual stock held in a portfolio.
• E) A security's beta measures its non-diversifiable,or market,risk relative to that of an average stock.

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Definitions:

Sexual Elder Abuse

Occurs when an older adult is forced to engage in sexual activity; this may include verbal suggestive behaviour, sexual touching, sex without consent, or not respecting a person’s privacy.

Systemic Ageism

Behaviour, policies, or practices that discriminate based on age; can be intentional or unintentional.

Cultural Greywashing

Refers to the marginalization and overgeneralizations made about older adults that result in extreme stereotyping.

Resistance Of Aging

Efforts and behaviors aimed at delaying or combating the physical, cognitive, and emotional changes associated with getting older.