If a stock portfolio is well diversified, then the portfolio varianceA. will equal the variance of the most volatile stock in the portfolio. B. may be less than the variance of the least risky stock in the portfolio. C. must be equal to or greater than the variance of the least risky stock in the portfolio. D. will be a weighted average of the variances of the individual securities in the portfolio.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If a stock portfolio is well diversified, then the portfolio varianceA. will equal the variance of the most volatile stock in the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
How might an economist gather empirical data to test the proposed relationship between money and the price level?
Answers (1)
How are business entrepreneurs and social entrepreneurs different?
Answers (2)
When most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending and a recession results: a. A self-correction has occured b. An adverse aggregate supply shock has occired c.
Answers (1)
Burr Publishers purchased a building on March 20, 20X1, for $160,000. Other amounts related to this purchase are as follows:Price listed by seller on Jan. 1, 20X1, $180,000Burr Publishers' initial offer to buy on Jan.
Answers (1)
Economic exposure refers to Multiple Choice the sensitivity of realized domestic currency values of the firm's contractual cash flows denominated in foreign currencies to unexpected exchange rate changes.
Answers (1)
New Questions in Business
You can choose between two purchases: Machine A or Machine B. Machine A costs $24,000 and has a salvage value of $12,000 after 3 years. Machine B costs $30,000 and has a salvage value of $16,000 after 4 years.
Answers (2)
When the preparation of consolidated financial statements in a parent-subsidiary relationship occurs, it is an example of the?
Answers (1)
The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the stock's expected return and standard deviation of returns? E (R) = 8.5% σ = 22.70%
Answers (1)
6. You head the product development division of a major corporation. How can you get the people in your division to come up with ideas for new products?
Answers (1)
Unable to borrow from other banks, University Bank is forced to turn to the Federal Reserve for needed funds. What is the interest rate the Federal Reserve will charge University Bank called? A. open market operations required B. reserve ration C.
Answers (1)