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Author Question: Risk aversion means investors like returns and dislike risk. So, other things held constant, the ... (Read 49 times)

booty5

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on: Aug 7, 2023

Question 1

Portfolio A has only one security, whereas Portfolio B has 200. Because of the diversification effect, the risk of Portfolio B must be lower than that of Portfolio A.

◦ true
◦ false

Question 2

Risk aversion means investors like returns and dislike risk. So, other things held constant, the higher a security’s risk, the lower its price and the higher its required return. 

◦ true
◦ false
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Marked as best answer by booty5 on Aug 7, 2023

Jaclyn92G6

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Reply #1 on: Aug 7, 2023
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booty5

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

tranoy

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Reply 3 on: Yesterday
Wow, this really help

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