Which one of the following funds should be viewed as less attractive when held in a large, well-diversified portfolio? Fund E[R] Standard Deviation Beta ABC 10% 35% 1.2 XYZ 10% 30% 1.6 Group of answer choices ABC because its beta is lower. XYZ because its beta is higher. ABC because its standard deviation is higher. XYZ because its standard deviation is lower.

Which one of the following funds should be viewed as less attractive when held in a large, well-diversified portfolio? Fund E[R] Standard Deviation Beta ABC 10% 35% 1.2 XYZ 10% 30% 1.6 Group of answer choices ABC because its beta is lower. XYZ because its beta is higher. ABC because its standard deviation is higher. XYZ because its standard deviation is lower.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13QTD

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Question

Which one of the following funds should be viewed as less attractive when held in a large, well-diversified portfolio?

Fund	E[R]	Standard Deviation	Beta
ABC	10%	35%	1.2
XYZ	10%	30%	1.6

Group of answer choices

ABC because its beta is lower.

XYZ because its beta is higher.

ABC because its standard deviation is higher.

XYZ because its standard deviation is lower.

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