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

Author Question: Which of the following statements is correct? (Read 75 times)

mmmmm

  • Full Member
  • ***
  • Posts: 155
on: Aug 7, 2023
Which of the following statements is correct?

◦

Even if you add enough randomly selected stocks to a portfolio, you can never eliminate all of the company-specific risk from the portfolio.


◦

If you were restricted to investing in publicly traded common stocks, yet you wanted to minimize the riskiness of your portfolio as measured by its beta, then according to the CAPM theory you should invest an equal amount of money in each stock in the market. That is, if there were 100,000 traded stocks in the world, the least risky possible portfolio would include some shares of each one.


◦

If you formed a portfolio that consisted of all stocks with betas less than 0.9, which is about half of all stocks, the portfolio would itself have a beta coefficient that is equal to the weighted average beta of the stocks in the portfolio, and that portfolio would have less risk than a portfolio that consisted of all stocks in the market.


◦

A portfolio that consists of all stocks in the market would have a required return that is less than the risk-free rate.

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 mmmmm on Aug 7, 2023

brunoanthony

  • Full Member
  • ***
  • Posts: 169
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


mmmmm

  • Member
  • Posts: 155
Reply 2 on: Aug 7, 2023
Gracias!

amcvicar

  • Member
  • Posts: 341
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

This chart illustrates the “drip down” model of government. In this, politics is formed by the soc This chart illustrates the “drip down” model of government. In this, politics is formed by the soc
Ergonomically correct desk, chair, and keyboard. Ergonomically correct desk, chair, and keyboard.
Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ... Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ...
Using the measuring device to give the correct dose to children Using the measuring device to give the correct dose to children
Are these the correct answers for finding the derivative using the power rule? Are these the correct answers for finding the derivative using the power rule?
Is my concept map correct? (Grade 12 Bio) Is my concept map correct? (Grade 12 Bio)
Video: TRH/TSH/Thyroid hormone

For a complete list of videos, visit our video library