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

Author Question: Which of the following statements is correct? (Read 109 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
Wow, this really help


pratush dev

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Excellent

 

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

For a complete list of videos, visit our video library