Author Question: As randomly selected securities are combined to create a portfolio, the ________ risk of the ... (Read 28 times)

xclash · **on:** Jul 10, 2018

As randomly selected securities are combined to create a portfolio, the ________ risk of the portfolio decreases until 10 to 20 securities are included. The portion of the risk eliminated is ________ risk, while that remaining is ________ risk.

A) diversifiable; nondiversifiable; total
B) relevant; irrelevant; total
C) total; diversifiable; nondiversifiable
D) total; nondiversifiable; diversifiable

Question 2

The beta of the portfolio in Table 8.2 indicates this portfolio ________.

A) has more risk than the market
B) has less risk than the market
C) has an unrelated amount of risk compared to the market
D) has the same risk as the market