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Author Question: Which of the following statements is correct? (Read 49 times)

Lin Shi

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on: Aug 7, 2023
Which of the following statements is correct?

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A large portfolio of randomly selected stocks may have a standard deviation of returns that is greater than the standard deviation of a portfolio with fewer stocks.


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Company-specific (or diversifiable) risk can be reduced by forming a large portfolio, and market (or systematic) risk may be reduced by forming a highly diversified portfolio.


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A large portfolio of stocks whose betas are greater than 1.0 will have less market risk than a single stock with a beta = 0.7.


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If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the systematic risk from the portfolio.

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

Tussalpain

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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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Lin Shi

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

softEldritch

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Reply 3 on: Yesterday
Excellent

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