Multiple Choice
As the number of stocks in a portfolio is increased:
A) Unique risk decreases and approaches to zero
B) Market risk decreases
C) Unique risk decreases and becomes equal to market risk
D) Total risk approaches to zero
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q1: Long-term U.S. government bonds have:<br>A) Interest rate
Q4: Standard error measures:<br>A) Nominal annual rate of
Q6: If the average annual rate of return
Q7: The correlation coefficient between stock A and
Q8: The annual return for three years for
Q9: For each additional 1% change in the
Q10: The unique risk is also called the:<br>A)
Q11: Explain why international stock may have high
Q27: Briefly explain how diversification reduces risk.
Q28: Briefly explain the concept of value additivity.