What Happens to the Amount of Market Risk as the Number

question 49

Multiple Choice

What happens to the amount of market risk as the number of assets in a portfolio increases?

• A)It decreases.
• B)It increases.
• C)It remains constant.
• D)It changes randomly.

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Definitions:

RC Parallel Circuit

An electrical circuit that consists of resistors (R) and capacitors (C) connected alongside each other in parallel, allowing for AC filtering or timed circuits.

R

In electrical engineering, "R" typically refers to resistance, which is a measure of the opposition to the flow of electric current.

Apparent Power

The product of the current and voltage in an AC circuit, measured in volt-amperes, not necessarily equal to the actual power consumed.

RC Parallel Circuit

An electrical circuit in which a resistor and a capacitor are connected in parallel, affecting the impedance and phase angle of the overall circuit.