A portfolio with equal amounts invested in the five big Canadian banks would
A) be considered a well-diversified portfolio.
B) eliminate systematic risk.
C) provide for a very high expected return with minimal risk.
D) be a highly correlated portfolio of stocks.

Question

Quizplus · Accepted Answer

A portfolio with equal amounts invested in the five big Canadian banks would be a highly correlated portfolio of stocks. Although it may provide diversification within the financial sector, it would not eliminate systematic risk and may not necessarily provide a very high expected return with minimal risk.

A Portfolio with Equal Amounts Invested in the Five Big