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Author Question: What should you expect to happen if you randomly select stocks and add them to your portfolio? (Read 4 times)

desireelg_7

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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.



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Marked as best answer by desireelg_7 on Aug 7, 2023

Rcfelber

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desireelg_7

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Reply 2 on: Aug 7, 2023
Excellent


AISCAMPING

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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