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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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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