Question: Which statement about risk is TRUE? Select one: a, If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of
Which statement about risk is TRUE?
Select one:
a, If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio
b. If you believe the stock market is about to rise sharply. you should sell your high-beta stocks and buy low-beta stocks in order to take advantage of the expected market move.
C. A portfolio that consists of all stocks in the market would have a required return that is equal to the risk-free rate.
d. An investor can eliminate virtually all diversifiable risk if he or she holds a very large, well-diversified portfolio of stocks.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
