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Author Question: Assume that two investors each hold a portfolio, and that portfolio is their only asset. Investor As ... (Read 177 times)

dekbert

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on: Aug 7, 2023
Assume that two investors each hold a portfolio, and that portfolio is their only asset. Investor A’s portfolio has a beta of minus 3.0, while Investor B’s portfolio has a beta of plus 3.0. Assuming that the unsystematic risks of the stocks in the two portfolios are the same, then the two investors face the same amount of risk. By adding some “normal” stocks with beta = 1.0, the holders of either portfolio could lower their risks, but the risk reduction effect in Investor B’s portfolio would be larger.

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

Yermi196

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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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dekbert

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

mammy1697

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Reply 3 on: Yesterday
Wow, this really help

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