This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What should you expect to happen if you randomly select stocks and add them to your portfolio? (Read 52 times)

desireelg_7

  • Full Member
  • ***
  • Posts: 146
on: Aug 7, 2023

Question 1

What is the effect on portfolio beta of a smaller number of assets in a portfolio and a shorter time period?

◦

It is less stable.


◦

It is more stable.


◦

It is more consistent.


◦

It is less consistent.



Question 2

What should you expect to happen if you randomly select stocks and add them to your portfolio?

◦

This will maximize the portfolio’s expected rate of return.


◦

This will reduce the portfolio’s market risk but not its unsystematic risk.


◦

This will reduce the portfolio’s unsystematic risk.


◦

This will reduce the portfolio’s beta coefficient and thus its market risk.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by desireelg_7 on Aug 7, 2023

Rcfelber

  • Full Member
  • ***
  • Posts: 151
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.
Answer Preview
Only 39% of students answer this correctly


desireelg_7

  • Member
  • Posts: 146
Reply 2 on: Aug 7, 2023
:D TYSM

DylanD1323

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

This chart illustrates the “drip down” model of government. In this, politics is formed by the soc This chart illustrates the “drip down” model of government. In this, politics is formed by the soc
Select the Code with the Highest Level of Specificity Select the Code with the Highest Level of Specificity
Select the proper adapter for the compression gauge. The threads on the adapter should match those ... Select the proper adapter for the compression gauge. The threads on the adapter should match those ...
For toluene (shown below), you would expect to see which m/z fragment in the mass spectrum? For toluene (shown below), you would expect to see which m/z fragment in the mass spectrum?
Select the changes in the embryo that indicate that a blastocyst has formed. 3 options: t Select the changes in the embryo that indicate that a blastocyst has formed. 3 options: t
Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ... Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ...
Video: Cardiac Cycle (Part 3 of 4)

For a complete list of videos, visit our video library