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  2. Business
  3. International Business Study Set 5
  4. Quiz 12: The Global Capital Market

As Investors Increase the Number of Stocks in Their Portfolio,the

Question 50
Multiple Choice

As investors increase the number of stocks in their portfolio,the portfolio's risk _____. A) increases initially and declines later B) declines slowly and steadily C) increases exponentially beyond a point D) declines rapidly in the beginning

Related questions
Q 51
Systematic risk refers to movements in a stock portfolio's value that are _____. A) attributable to macroeconomic forces affecting an economy B) specific to the firm or individuals who invest in a portfolio C) attributable to factors pertaining to an individual firm D) specific to the company that facilitates the investment portfolio
Q 52
The relatively low correlation between the movement of stock markets in different countries indicates that _____. A) diversifying a portfolio will increase the risk of investing B) most countries face similar economic conditions C) countries pursue different macroeconomic policies D) different stock markets are not segmented from each other
Q 53
The element of risk into investing in foreign assets is more with _____ exchange rates. A) floating B) pegged C) fixed D) managed
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