Business

Business, 10.09.2019 01:30, brinicole1011

In a portfolio of three randomly selected stocks, which of the following could not be true; i. e., which statement is false? a. the standard deviation of the portfolio is less than the standard deviation of each of the stocks if they were held in isolation. b. the standard deviation of the portfolio is greater than the standard deviation of one or two of the stocks. c. the beta of the portfolio is lower than the lowest of the three betas. d. the beta of the portfolio is equal to one of the three stock's betas. e. the beta of the portfolio is equal to 1.

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Business, 06.10.2019 07:00, nuneybaby

Which of the following statements is correct? a. diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk. b. a large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected. c. a large portfolio of stocks whose betas are greater than 1.0 will have less market risk than a single stock with a beta = 0.8. d. a large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a 1-stock portfolio if that one stock has a beta less than 1.0. e. if you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.

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Business, 24.10.2019 17:43, eri85

5. portfolio risk and diversification a financial planner is examining the portfolios held by several of her clients. which of the following portfolios is likely to have the smallest standard deviation? a portfolio consisting of about 30 energy stocks. a portfolio consisting of about 30 randomly selected stocks. a portfolio containing only chevron stock. portfolio managers pick stocks for their clients’ portfolios based on the investment objective of the portfolio and several other factors. one key consideration is each stock’s contribution to portfolio risk and its statistical relationship with the portfolio’s other stocks. based on your understanding of portfolio risk, identify whether each statement is true or false. statement true false when returns on stock a increase, returns on stock b also increase. in general, this would mean that stocks a and b are positively correlated. the market risk component of the total portfolio risk can be reduced by randomly adding stocks to the portfolio. the risk in a portfolio will increase if more stocks that are negatively correlated with other stocks are added to the portfolio. a portfolio’s risk is not equal to the weighted average of the individual stocks’ standard deviations.

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Business, 08.11.2019 05:31, lulprettyb

Afinancial planner is examining the portfolios held by several of her clients. which of the following portfolios is likely to have the smallest standard deviation a. portfolio with 10 randomly selected international stocks b a portfolio with 10 randomly selected stocks from us and international markets c. a portfolio with 10 randomly selected us stocks based on your understanding of portfolio risk, identify whether each statement is true or false a portfolio's risk is likely to be smaller than the average of all stocks standard diversification because diversification lowers the portfolio's risk because of the effects of diversifications, the portfolio's risk is likely to be more than the average of all stocks standard deviations portfolio risk will increase if more stocks that are negatively correlated with other stocks are added to the porfolio the unsystematic risk component of the total portfolio risk can be reduced by adding negatively correlated stocks to the portfolio

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In a portfolio of three randomly selected stocks, which of the following could not be true; i. e.,...

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