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Author Question: What should you expect to happen if you randomly select stocks and add them to your portfolio? (Read 54 times)

desireelg_7

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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?

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It is less stable.


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It is more stable.


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It is more consistent.


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It is less consistent.



Question 2

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

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


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


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This will reduce the portfolio’s unsystematic risk.


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

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by desireelg_7 on Aug 7, 2023

Rcfelber

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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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desireelg_7

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

xthemafja

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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