You have overheard the following statement: According to portfolio theory, shares are priced on the basis of

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You have overheard the following statement: ‘According to portfolio theory, shares are priced on the basis of their systematic riskiness. This means, therefore, that a piece of bad news relating only to a particular business will not affect the market price of that business’s shares.’

Is this statement correct? Explain.

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Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

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