NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
Exam Code: ' marker.Nexus-5548-B(config)#
A. vPC domain cannot be configured at the global prompt
B. The vPC links have to be configured before the vPC domain can be added
C. Have not yet turned on the vpc feature using the 'feature vpc' command
D. The vPC domain has already been configured
Answer: C
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
Exam Name:
Version: V13.25
Q & A: 72 Questions and Answers
' marker.Nexus-5548-B(config)#
A. vPC domain cannot be configured at the global prompt
B. The vPC links have to be configured before the vPC domain can be added
C. Have not yet turned on the vpc feature using the 'feature vpc' command
D. The vPC domain has already been configured
Answer: C
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
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NEW QUESTION: 1
Refer to the exhibit.
Which option describes why the EIGRP neighbors of this router are not learning routes that are received from OSPF?
A. The subnet defined in OSPF is not part of area 0.
B. There is no overlap in the subnets advertised.
C. Default metrics are not configured under EIGRP.
D. The routing protocols do not have the same AS number.
Answer: C
NEW QUESTION: 2
When trying to configure a Virtual Port Channel (vPC), what might be a cause of the following error when
trying to create the vPC domain?.
Nexus-5548-B(config)# vpc domain 10
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",
"aggregateRating": {
"@type": "AggregateRating",
"ratingValue": "4.7",
"reviewCount": "935"
},
"image": "https://www.passtorrent.com/_/ptt/imgs/product.jpg",
"name": "C_S4CPR_2402 ' marker.Nexus-5548-B(config)#
A. vPC domain cannot be configured at the global prompt
B. The vPC links have to be configured before the vPC domain can be added
C. Have not yet turned on the vpc feature using the 'feature vpc' command
D. The vPC domain has already been configured
Answer: C
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
I find the questions in the real test are the same as the ' marker.Nexus-5548-B(config)#
A. vPC domain cannot be configured at the global prompt
B. The vPC links have to be configured before the vPC domain can be added
C. Have not yet turned on the vpc feature using the 'feature vpc' command
D. The vPC domain has already been configured
Answer: C
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
I passed ' marker.Nexus-5548-B(config)#
A. vPC domain cannot be configured at the global prompt
B. The vPC links have to be configured before the vPC domain can be added
C. Have not yet turned on the vpc feature using the 'feature vpc' command
D. The vPC domain has already been configured
Answer: C
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
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A. vPC domain cannot be configured at the global prompt
B. The vPC links have to be configured before the vPC domain can be added
C. Have not yet turned on the vpc feature using the 'feature vpc' command
D. The vPC domain has already been configured
Answer: C
NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.
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NEW QUESTION: 3
Your cousin has recently attended a seminar on the benefits of diversification. Based on what he learned, he decided to sell the shares he had in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks. Based on this information, you can tell him:
A. that he's less diversified than he was before.
B. that he's wise beyond his years.
C. none of the above.
D. that he's less diversified than he was before, but can expect a higher rate of return.
Answer: A
Explanation:
Explanation/Reference:
Explanation: If your cousin sold his shares in a large stock growth fund and put 50% of his money in hotel stocks and 50% in airline stocks, you can tell him that he's less diversified than he was before. The large stock growth fund was invested in many more industries than two-industries whose returns are less likely to move together than stocks in the hotel and airline industries. His expected return will not necessarily be higher and may even be lower; he's just exposed to more risk. The return that can be expected from an investment is based on its non-diversifiable, or market, risk. An investor cannot expect a higher return by putting all his eggs in one (or in this case, two) baskets.