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

Author Question: Which of the following statements is correct? (Read 40 times)

Lin Shi

  • Full Member
  • ***
  • Posts: 131
on: Aug 7, 2023
Which of the following statements is correct?

◦

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.


◦

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.


◦

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.


◦

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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

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

Tussalpain

  • Full Member
  • ***
  • Posts: 189
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


Lin Shi

  • Member
  • Posts: 131
Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

jomama

  • Member
  • Posts: 346
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

This girl has a long leg cast, which was applied after surgery to correct her clubfoot. This girl has a long leg cast, which was applied after surgery to correct her clubfoot.
Correct use a fire extinguisher Correct use a fire extinguisher
Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ... Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ...
If the valve clearance (lash) is not correct, loosen the retaining nut and turn the valve adjusting ... If the valve clearance (lash) is not correct, loosen the retaining nut and turn the valve adjusting ...
Stacking the joints. A. Correct thumb–wrist alignment for applying direct pressure. B. Incorrect ... Stacking the joints. A. Correct thumb–wrist alignment for applying direct pressure. B. Incorrect ...
Combination of arrangement and sequence is correct Combination of arrangement and sequence is correct
Video: Passive Smoke Exposure

For a complete list of videos, visit our video library