As you add more stocks to a portfolio:
A. market risk is increasingly diversified away.
B. specific risk is increasingly diversified away.
C. market risk declines but specific risk rises.
D. specific risk at first falls, then rises.
Answer: B
You might also like to view...
Inventories and prepaid assets are excluded from the numerator used to compute the quick ratio
a. True b. False Indicate whether the statement is true or false
________ is the practice of pricing certain items lower than normal to increase customers' traffic flow or boost sales of complementary products.
A. Odd pricing B. Follow-up pricing C. Stimulus pricing D. Price lining E. Leader pricing
The factor scores for the ith factor may be estimated as follows: ________
A) Fi = Wi1 X1 + Wi2 X2 + Wi3 X3 + ... + Wik Xk B) Fi = Wi1 X1 + Wi2 X2 + Wi3 Y3 + ... + Wik Yk C) Xi = Wi1 F1 + Wi2 F2 + Wi3 F3 + ... + Wim Fm D) Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ... + Aim Fm
If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor
a. True b. False Indicate whether the statement is true or false