The ____ the number of stocks in a portfolio and the ____ the time period the ____ the portfolio beta.
A) Larger, longer, less stable
B) Larger, longer, more stable
C) Larger, shorter, less stable
D) Larger, shorter, more stable
E) Smaller, longer, more stable

Question

Quizplus · Accepted Answer

A larger number of stocks and a longer time period generally lead to a more stable portfolio beta due to diversification and the smoothing effect over time.

The ____ the Number of Stocks in a Portfolio and the ____

The the Number of Stocks in a Portfolio and the