When the overall market experiences a decline of 8%,an investor with a portfolio of aggressive stocks will probably experience:
A) portfolio losses of less than 8%.
B) portfolio losses greater than 8%.
C) portfolio gains of less than 8%.
D) portfolio gains greater than 8%.

Question

Quizplus · Accepted Answer

Aggressive stocks tend to have higher volatility and are more sensitive to market movements. Therefore, when the overall market experiences a decline of 8%, it is likely that the portfolio of aggressive stocks will experience greater losses than 8%.

When the Overall Market Experiences a Decline of 8%,an Investor