How does the diversification of an investor's portfolio avoid risk? A. If an investor buys stocks that are negatively correlated, as the number of stocks held increases, the overall variance of the portfolio increases. B. If an investor buys stocks that are positively correlated, as the number of stocks held increases, the overall variance of the portfolio increases. C. If an investor buys stocks that are negatively correlated, as the number of stocks held increases, the overall variance of the portfolio decreases. D. If an investor buys stocks that are positively correlated, as the number of stocks held increases, the overall variance of the portfolio decreases.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “How does the diversification of an investor's portfolio avoid risk? A. If an investor buys stocks that are negatively correlated, as the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Most banks will provide a list of the costs associated with your account. What is this list called?
Answers (1)
An automobile dealership that has always had success with homemade advertisements finds it difficult to switch to a professional advertising agency, despite the fact that consumers are becoming more sophisticated. A. DissolutionB. InactionC.
Answers (1)
Which one of the following is not an accurate description of the Allowance for Doubtful Accounts? Multiple Choice : The account is a temporary account. The account is increased by an estimate of uncollectible accounts expense.
Answers (1)
List four substances/methods that have been banned by the international olympic committee.
Answers (1)
For the month of May 2020, Ceres Corporation, which uses the direct write-off method in accounting for uncollectible accounts receivable, has the following information: Cash sales $40,000 Cash received on accounts receivable $32,000 Accounts
Answers (1)
New Questions in Business
Personal Selling is: a. The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision. b.
Answers (1)
Potanta is a company that manufactures herbal soaps. Over the years, the availability of aloe vera pulp, which is the keyingredient of the company's best-selling aloe vera soaps, has reduced.
Answers (1)
An advertiser enables target cost-per-acquisition (cpa) bidding and notices that conversions decrease. what might cause this?
Answers (1)
A trigger strategy is a strategy that: A. is not relevant to oligopolies. B. determines when to enter an industry. C. depends on an opponent's past decisions. D. tells a business to leave the industry because the price is below the AVC.
Answers (1)
What is the effect on the supply curve for skateboards if the government implements a tax on the manufacturing process?
Answers (1)