Which of the following is a reason for beta being considered as a relevant measure risk,instead of variance?
A) The marginal variance determines the incremental risk from adding a small amount of the investment to the portfolio.
B) The total variance determines the incremental risk from adding a small amount of the investment to the portfolio.
C) The total variance of the asset added determines the total risk of the portfolio.
D) The marginal risk of the portfolio is unaffected by the variance in the returns of the individual assets in the portfolio.
Correct Answer:
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Q1: The beta of a risk-free asset:
A)is equal
Q2: Which of the following represents the
Q3: Which of the following is the
Q4: Which of the following can be considered
Q6: Which of the following is a disadvantage
Q7: How are mean-variance analysis and the CAPM
Q8: Momentum is defined as:
A)the number of securities
Q9: Which of the following is an assumption
Q10: To identify the tangency portfolio:
A)we must find
Q11: A portfolio consists of three stocks with
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