This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 100 times)

jmoore1989

  • Full Member
  • ***
  • Posts: 139
Which of the following statements is correct?

A portfolio with a large number of randomly selected stocks would have less market risk than a single stock that has a beta of 0.4.


A portfolio with a large number of randomly selected stocks would have more market risk than a single stock that has a beta of 0.4, assuming that the stock’s beta was correctly calculated and is stable.


If a stock has a negative beta, its expected return cannot be positive. 


According to the CAPM, stocks with lower standard deviations of returns must also have lower expected returns.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jmoore1989 on Aug 7, 2023

gwisel

  • Full Member
  • ***
  • Posts: 154
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




jmoore1989

  • Member
  • Posts: 139
Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


Mochi

  • Member
  • Posts: 300
Reply 3 on: Yesterday
Excellent

 

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

For a complete list of videos, visit our video library