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    Intermediate Financial Management Study Set 2
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    Exam 2: Risk and Return: Part I
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    Portfolio a Has but One Security, While Portfolio B Has
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Portfolio a Has but One Security, While Portfolio B Has

Question 25

Question 25

True/False

Portfolio A has but one security, while Portfolio B has 100 securities. Because of diversification, we know that Portfolio B will have the lower market risk; that is, Portfolio B will have the lower beta.

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