Business, 07.10.2019 22:10 alaf05160

Which of the following statements is correct?
a. if portfolios are formed by randomly selecting stocks, a 10-stock portfolio will always have a lower beta than a one-stock portfolio.
b. a two-stock portfolio will always have a lower standard deviation than a one-stock portfolio.
c. a two-stock portfolio will always have a lower beta than a one-stock portfolio.
d. a stock with an above-average standard deviation must also have an above-average beta.
e. a portfolio that consists of 40 stocks that are not highly correlated with "the market" will probably be less risky than a portfolio of 40 stocks that are highly correlated with the market, assuming the stocks all have the same standard deviations.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 05:30, junior2461

Identify the three components of a family's culture and provide one example from your own experience

Answers: 2

continue

Business, 22.06.2019 06:30, mjasmine3280

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.

Answers: 3

continue

Business, 22.06.2019 23:00, Bmurphy17

If the reserve requirement is 10 percent, what amount of excess reserves does a bank acquire when a business deposits a $500 check drawn on another bank?

Answers: 2

continue

Business, 22.06.2019 23:00, keylor97

Which best describes what financial planning skills ultimately enable an individual to do? to prepare for the future to determine lifetime income to determine the cost of living to learn from the past

Answers: 1

continue

You know the right answer?

Which of the following statements is correct?
a. if portfolios are formed by randomly select...