The risk of a portfolio consisting of two uncorrelated assets will be
A) equal to zero.
B) equal to the average of the risk level of the two assets.
C) greater than the risk of the least risky asset but less than the risk level of the more risky asset.
D) greater than zero but less than the risk of the more risky asset.
Correct Answer:
Verified
Q1: Which one of the following conditions can
Q2: Which one of the following types of
Q3: Systematic risks
A) can be eliminated by investing
Q4: Investors are rewarded for assuming
A) any type
Q6: A measure of systematic risk is
A) beta.
B)
Q7: ABC shares have a beta of 0.73.
Q8: The Franko Company has a beta of
Q9: Traditional portfolio management
A) includes only diversified bonds
Q10: Beta can be defined as the slope
Q11: The efficient frontier
A) represents the best attainable
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