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

Question

Quizplus · Accepted Answer

The systematic risk (beta) of a portfolio will change by holding more stocks, even if they each had the same systematic risk. This is because beta is a measure of the portfolio's sensitivity to market movements, and adding more stocks to the portfolio can increase or decrease its sensitivity to these movements.

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