Ted believes that he currently owns a portfolio which is adequately diversiﬁed. If he is correct, the addition of a _____ asset to the portfolio will have minimal, if any, effect on the portfolio's _____.
A) risk-free; beta
B) risk-free; rate of return
C) risky; rate of return
D) risky; beta
E) risky; standard deviation

Question

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The Answer of Ted believes that he currently owns a portfolio which is adequately diversiﬁed. If he is correct, the addition of a _____ asset to the portfolio will have minimal, if any, effect on the portfolio's _____.
A) risk-free; beta
B) risk-free; rate of return
C) risky; rate of return
D) risky; beta
E) risky; standard deviation

Ted Believes That He Currently Owns a Portfolio Which Is