This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What should you expect to happen if you randomly select stocks and add them to your portfolio? (Read 51 times)

desireelg_7

  • Full Member
  • ***
  • Posts: 146
on: Aug 7, 2023

Question 1

What is the effect on portfolio beta of a smaller number of assets in a portfolio and a shorter time period?

◦

It is less stable.


◦

It is more stable.


◦

It is more consistent.


◦

It is less consistent.



Question 2

What should you expect to happen if you randomly select stocks and add them to your portfolio?

◦

This will maximize the portfolio’s expected rate of return.


◦

This will reduce the portfolio’s market risk but not its unsystematic risk.


◦

This will reduce the portfolio’s unsystematic risk.


◦

This will reduce the portfolio’s beta coefficient and thus its market risk.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by desireelg_7 on Aug 7, 2023

Rcfelber

  • Full Member
  • ***
  • Posts: 151
Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


desireelg_7

  • Member
  • Posts: 146
Reply 2 on: Aug 7, 2023
Wow, this really help

covalentbond

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
How does PCA reduce the dimension of a statistical problem? How do you select the reduced ... How does PCA reduce the dimension of a statistical problem? How do you select the reduced ...
In the Florida lottery, the numbers (between 1 and 49) are generated randomly with the ... In the Florida lottery, the numbers (between 1 and 49) are generated randomly with the ...
For toluene (shown below), you would expect to see which m/z fragment in the mass spectrum? For toluene (shown below), you would expect to see which m/z fragment in the mass spectrum?
Select the changes in the embryo that indicate that a blastocyst has formed. 3 options: t Select the changes in the embryo that indicate that a blastocyst has formed. 3 options: t
A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ... A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ...
Video: The pH scale - Strong acids and Weak acids

For a complete list of videos, visit our video library