Consider the theory of active portfolio management. Shares A and B have the same positive alpha and the same non-systematic risk. Share A has a higher beta than share B. You should want ________ in your active portfolio.
A)equal proportions of Shares A and B
B)more of Share A than Share B
C)more of Share B than Share A
D)more information is needed to answer this question

Question

Quizplus · Accepted Answer

The Answer of Consider the theory of active portfolio management. Shares A and B have the same positive alpha and the same non-systematic risk. Share A has a higher beta than share B. You should want ________ in your active portfolio.
A)equal proportions of Shares A and B
B)more of Share A than Share B
C)more of Share B than Share A
D)more information is needed to answer this question

Consider the Theory of Active Portfolio Management