An Individual Stock's Diversifiable Risk, Which Is Measured by the Stock's

question 90

True/False

An individual stock's diversifiable risk, which is measured by the stock's beta, can be lowered by adding more stocks to the portfolio in which the stock is held.

---

Definitions:

High-Density Lipoprotein

A class of lipoprotein that carries cholesterol away from the arteries to the liver for removal; often referred to as "good" cholesterol.

Lipid

Organic compounds including fats, oils, waxes, and sterols, which are important for energy storage, insulating and protecting organs.

Chylomicrons

Lipoprotein particles that transport dietary lipids from the intestines to other locations in the body.

Intestinal Epithelial Cells

Cells that line the interior surface of the intestines, playing roles in nutrient absorption, secretion, and serving as a barrier to pathogens.