Familiarity bias, the tendency for investors to invest a largeamount of their portfolio in familiar equities, will

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Familiarity bias, the tendency for investors to invest a largeamount of their portfolio in familiar equities, will always lead toportfolios which:

A) Have higher expected returns than the market portfolio

B) Have greater exposure to systematic risk

C) Are on the efficient frontier

D) None of the above

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324302691

11th edition

Authors: Eugene F. Brigham, ? Joel F. Houston

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Posted Date: Nov 22, 2022 02:41 PM

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Familiarity bias, the tendency for investors to invest a largeamount of their portfolio in familiar equities, will

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Expert Answer:

D None of the above Explanation Familiarity bias is a behavioral bias ... View the full answer

Fundamentals of Financial Management

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