The measure of risk for a security held in a diversified portfolio is: a. Specific risk. b. Standard deviation of turns. c. Reinvestment risk. d. Covariance. Portfolio theory as described by Markowitz is most concerned with: a. The elimination of systematic risk. b. The effect of diversification on portfolio risk. c. The identification of unsystematic risk. d. Active portfolio management to enhance return. Assume that a risk-averse investor owing stock in Miller Corporation decides to add the stock of either Mac or Green Corporation to her portfolio. All three stocks offer the same expected return and total risk. The covariance of return between Miller and Mac is - .05 and between Miller and Green is + .05. Portfolio risk is expected to: a. Decline more when the investor buys Mac. b. Decline more when the investor buys Green. c. Increase when either Mac or Green is ought