Multiple Choice
A portfolio of securities has a beta of 1.14. Given this, you know that:
A) adding another security to the portfolio must lower the portfolio beta.
B) the portfolio has more risk than a risk-free asset but less risk than the market.
C) each of the securities in the portfolio has more risk than an average security.
D) the portfolio has 14% more risk than a risk-free security.
E) the expected return on the portfolio is greater than the expected market return.
Correct Answer:
Verified
Correct Answer:
Verified
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