Which one of the following would tend to indicate that a portfolio is being effectively diversified?
A) A decrease in the portfolio standard deviation
B) An increase in the portfolio rate of return
C) An increase in the portfolio beta
D) An increase in the portfolio standard deviation
E) A constant portfolio beta
Correct Answer:
Verified
Q25: Over time,the unexpected return on a company's
Q26: Mr.Rhoades is the CEO of Daily News.The
Q27: The principle of diversification tells us that
A)concentrating
Q28: Which one of the following is an
Q29: Well-diversified portfolios have negligible
A)systematic risks.
B)unsystematic risks.
C)expected returns.
D)variances.
E)market
Q31: The combination of the efficient set of
Q32: Unsystematic risk
A)can be effectively eliminated through portfolio
Q33: Systematic risk is measured by
A)beta.
B)the arithmetic average.
C)the
Q34: The separation principle states that an investor
Q35: The primary purpose of portfolio diversification is
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