Stocks with equal stand-alone risk can have:
A)the same risk impacts on a portfolio.
B)opposite risk impacts on a portfolio.
C)no risk impacts on a portfolio.
D)All of the above

Question

Quizplus · Accepted Answer

Stocks with equal stand-alone risk can have different impacts on a portfolio depending on their correlation with the portfolio's other assets. They can either increase, decrease, or not change the portfolio's risk, hence all of the options are possible.

Stocks with Equal Stand-Alone Risk Can Have