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Author Question: Which statement about risk is true? (Read 48 times)

stananza

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on: Aug 7, 2023
Which statement about risk is true?

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An investor can eliminate all market risk if they hold a very large and well-diversified portfolio of stocks.


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The lower the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.


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The market risk of a single stock is always higher than that of a portfolio that includes the stock.


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Almost half of the risk inherent in an average individual stock can be eliminated if the stock is held in a reasonably well diversified portfolio, which is one containing 20 or more stocks in a number of different industries.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by stananza on Aug 7, 2023

bball_babe_123

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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.
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stananza

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

tranoy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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