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

Author Question: Which statement about risk is true? (Read 57 times)

stananza

  • Full Member
  • ***
  • Posts: 162
on: Aug 7, 2023
Which statement about risk is true?

◦

An investor can eliminate all market risk if they hold a very large and well-diversified portfolio of stocks.


◦

The lower the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.


◦

The market risk of a single stock is always higher than that of a portfolio that includes the stock.


◦

Almost half of the risk inherent in an average individual stock can be eliminated if the stock is held in a reasonably well diversified portfolio, which is one containing 20 or more stocks in a number of different industries.

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 stananza on Aug 7, 2023

bball_babe_123

  • Full Member
  • ***
  • Posts: 178
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


stananza

  • Member
  • Posts: 162
Reply 2 on: Aug 7, 2023
Excellent

meganmoser117

  • Member
  • Posts: 303
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

These species are all at risk of extinction. Species with “slow” life-h These species are all at risk of extinction. Species with “slow” life-h
A true albino squirrel. Note the pink eyes. A true albino squirrel. Note the pink eyes.
Reduce Risk of Unintentional Injury Reduce Risk of Unintentional Injury
Nursing Interventions According to Stage of Severity for Suicide Risk Nursing Interventions According to Stage of Severity for Suicide Risk
Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure
Genes and Risk Factors for Alzheimer Disease Genes and Risk Factors for Alzheimer Disease
Video: Gas exchange - driving force

For a complete list of videos, visit our video library