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Author Question: Jane has a portfolio of 3 average stocks, and Dick has a portfolio of 30 average stocks. Assuming ... (Read 61 times)

0220521

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on: Aug 7, 2023
Jane has a portfolio of 3 average stocks, and Dick has a portfolio of 30 average stocks. Assuming the market is in equilibrium, which of the following statements is correct?

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Jane’s portfolio will havemorediversifiable risk and also more market risk than Dick’s portfolio.


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The required return on Jane’s portfolio will be higher than that on Dick’s portfolio because Jane’s portfolio will have more total risk.


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If the two portfolios have the same beta, their required returns will be the same, but Jane’s portfolio will have more market risk than Dick’s.


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Dick’s portfolio will have less diversifiable risk, the same market risk, and thus less total risk than Jane’s portfolio, but the required (and expected) returns will be the same on both portfolios.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by 0220521 on Aug 7, 2023

lola.jashay

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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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0220521

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

emsimon14

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Reply 3 on: Yesterday
Excellent

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