Which of the following would have the lowest amount of systematic risk?
A) A portfolio of the common stocks of 100 different companies.
B) The market portfolio.
C) A portfolio half invested in the market portfolio and half invested in Treasury bills.
D) A portfolio half invested in the market portfolio and half invested in stocks with betas = 1. 50.
E) A portfolio made up entirely of Treasury bills.

Question

Quizplus · Accepted Answer

Treasury bills are considered to have the lowest amount of systematic risk because they are backed by the full faith and credit of the U.S. government, making them virtually risk-free from market fluctuations.

Which of the Following Would Have the Lowest Amount of Systematic