The benefit in risk reduction from adding securities Blank______ as more and more securities are added to a portfolio. Multiple choice question. increases declines remains the same
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The benefit in risk reduction from adding securities Blank______ as more and more securities are added to a portfolio.
increases
declines
remains the same
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- Which of the following risks are reduced as more securities are added to the underlying portfolio? More than one answer may be correct. Multiple select question. Asset-specific risk Systematic risk Unique risk Market risk Unsystematic riskAs additional securities are added to a portfolio, total risk will generally ________ at a _________ rate. Group of answer choices rise; decreasing rise; increasing fall; decreasing fall; increasingSystematic risk will Blank______. Multiple choice question. decrease when securities are added to a portfolio be eliminated when securities are added to a portfolio not change when securities are added to a portfolio increase when securities are added to a portfolio
- In portfolio management, risk reduction is achieved by investing in a portfolio in which the securities Question 3 options:1) have a high covariance 2) have a high correlation coefficient 3) have a low coefficient of variation 4) have a lowcovariance 5) are perfectly positively correlated.PLS HELP ASAPA stock's risk has a component called _____________________, which can be minimized as we add more stocks to our portfolio. Select all that apply. A) market risk B) firm-specific risk C) diversifiable risk D) systematic risk
- Answercan be progressively eliminated by adding stocks to a portfolio? Systematic risk Specific risk Market risk Inflation rate riskThe security market line describes the expected return for O The efficient portfolio O The inefficient portfolio O All portfolios and assets O The efficient and inefficient portfolios
- Q. Markowitz theory indicates to create and construct a portfolio of assets to maximize returns within a given level of risk , or to devise one with a desired,specified and expected level of return with the least amount of risk.Under this broader concept,answer the following: a) Justify , why an optimal portfolio should lie on security market line curv? b) Being an efficient market investor , justify how an efficient frontier curve can be helpful for you in portfolio selection process ?1. An estimation by marginal investor, a higher expected return is earned on A. more risky securities B. less risky securities C. less premium D. high premiumWhich type of risk does not change when securities are added to a portfolio? Multiple choice question. Unique risk Company-specific risk Systematic risk Unsystematic risk
