Which one of the following portfolios might be expected to exhibit less specific risk? A) Ten random stocks; portfolio beta = 1.0 B) Twelve random stocks; portfolio beta unknown C) Three random stocks; portfolio beta = 1.2 D) Five random stocks; portfolio beta = 0.8
Which one of the following portfolios might be expected to exhibit less specific risk? A) Ten random stocks; portfolio beta = 1.0 B) Twelve random stocks; portfolio beta unknown C) Three random stocks; portfolio beta = 1.2 D) Five random stocks; portfolio beta = 0.8
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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![1) Which one of the following portfolios might be expected to exhibit less specific risk?
A) Ten random stocks; portfolio beta = 1.0
B) Twelve random stocks; portfolio beta unknown
C) Three random stocks; portfolio beta = 1.2
D) Five random stocks; portfolio beta = 0.8
%3D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01411e96-ee2d-4d8d-a4df-719e619baab6%2Fd5ae5e7b-40f2-4062-be5c-e224192d26dd%2F375qg9_processed.png&w=3840&q=75)
Transcribed Image Text:1) Which one of the following portfolios might be expected to exhibit less specific risk?
A) Ten random stocks; portfolio beta = 1.0
B) Twelve random stocks; portfolio beta unknown
C) Three random stocks; portfolio beta = 1.2
D) Five random stocks; portfolio beta = 0.8
%3D
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