The systematic risk (beta)of a portfolio is ________ by holding more stocks,even if they each had the same systematic risk.

Question

Quizplus · Accepted Answer

Systematic risk (beta) of a portfolio remains unchanged by holding more stocks, even if they each had the same systematic risk, because systematic risk is inherent to the entire market or market segment and cannot be diversified away by adding more stocks of the same risk level.

The Systematic Risk (Beta)of a Portfolio Is ________ by Holding