Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio?
a) adding more such stocks will reduce the portfolios unsystematic, diversifiable, risk.
b) adding more such stock will increase the portfolios expected rate of return.
c) adding more such stocks will have no effect on the portfolios risk.
d) adding more such stock will reduce the portfolios beta coefficient and thus its systematic risk.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio? a) ...” 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
2. The La Salle Bus Company has decided to purchase a new bus for $95,000 with a trade-in of their old bus. The old bus has a BV of $10,000 at the time of the trade-in. The new bus will be kept for 10 years before being sold.
Answers (2)
Suppose a company with high operating leverage is also operating at near capacity for all its fixed-cost resources. How could an increase in sales volume result in decreasing economies of scale for this company?
Answers (1)
Underwriting new securities issuance requires that the investment banka. purchases securities in the secondary market when they are undervalued. b. provides research and legal advice only to the issuing company. c.
Answers (1)
In an FRA, the buyer agrees to pay the seller A. the increased interest cost on a notional amount if interest rates fall below an agreement rate. B. Not Sure C. the increased interest cost if interest rates increase above the agreement rate D.
Answers (1)
The following transactions occurred at several different businesses and are not related. Post the following transactions into the appropriate T accounts. Transactions: Hunter Thompson, an owner, made an additional investment of $25,000 in cash.
Answers (1)
New Questions in Business
Which of the following options correctly completes the sentence? The social security lump-sum election means the taxpayer elects to treat the lump-sum social security benefit as if the benefits: a) For prior years had been received in those years,
Answers (1)
Moon, a farmer, needs to install a two-thousand-pound piece of equipment in his barn. This will require lifting the equipment thirty feet up into a hayloft.
Answers (1)
Alex did not have enough money in his checking account to cover a check that he wrote. The check bounced and he paid two fees-one to the bank and one to the store. He did have enough money in his savings account.
Answers (1)
Which part of the Federal Reserve Organization is the only part that is totally influenced by any political office from within the government?
Answers (1)
Rheingold Supply has a seniority system by which employees who have worked the longest are first in line for promotions and last to be laid off. As a result, most of the senior managers at Rheingold Supply are men.
Answers (1)