This topic contains a solution. Click here to go to the answer

Author Question: Which statement about risk is true? (Read 4 times)

stananza

  • Full Member
  • ***
  • Posts: 162
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.



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
Thanks for the timely response, appreciate it


JaynaD87

  • Member
  • Posts: 368
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

For a complete list of videos, visit our video library