In a portfolio with three different stocks, which of the following could not be true? Select one: a. The beta of the portfolio is less than the beta of each of the individual stocks. b. The riskiness of the portfolio is greater than the riskiness of one or two of the stocks. c. The riskiness of the portfolio is less than the riskiness of each stock held in isolation. d. The beta of the portfolio is greater than the beta of one or two of the individual stocks e. The beta of the portfolio is equal to the beta of one of the individual stocks
In a portfolio with three different stocks, which of the following could not be true? Select one: a. The beta of the portfolio is less than the beta of each of the individual stocks. b. The riskiness of the portfolio is greater than the riskiness of one or two of the stocks. c. The riskiness of the portfolio is less than the riskiness of each stock held in isolation. d. The beta of the portfolio is greater than the beta of one or two of the individual stocks e. The beta of the portfolio is equal to the beta of one of the individual stocks
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 6P
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In a portfolio with three different stocks, which of the following could not be true?
Select one:
a.
The beta of the portfolio is less than the beta of each of the individual stocks.
b.
The riskiness of the portfolio is greater than the riskiness of one or two of the stocks.
c.
The riskiness of the portfolio is less than the riskiness of each stock held in isolation.
d.
The beta of the portfolio is greater than the beta of one or two of the individual stocks
e.
The beta of the portfolio is equal to the beta of one of the individual stocks
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