Question: T/F question 1. standard deviation is not a useful risk measure for a portfolio because it contains all the systematic and idiosyncratic risk. Potfolio beta

T/F question

1. standard deviation is not a useful risk measure for a portfolio because it contains all the systematic and idiosyncratic risk. Potfolio beta is abetter measure for risk

2. The lower the correlation coefficient between two random risk portfolios, the more northwest investment opportunity sets investors can obtain

3. In equilibrium, investors still can find positive or negative alpha stock

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!