Multiple Choice
Which of the following would have the lowest amount of systematic risk?
A) A portfolio of the common stocks of 100 different companies.
B) The market portfolio.
C) A portfolio half invested in the market portfolio and half invested in Treasury bills.
D) A portfolio half invested in the market portfolio and half invested in stocks with betas = 1. 50.
E) A portfolio made up entirely of Treasury bills.
Correct Answer:
Verified
Correct Answer:
Verified
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