Multiple Choice
For a diversified portfolio including a large number of stocks,:
A) the weighted average expected return goes to zero.
B) the weighted average of the betas goes to zero.
C) the weighted average of the unsystematic risk goes to zero.
D) the return of the portfolio goes to zero.
E) the return on the portfolio equals the risk-free rate.
Correct Answer:

Verified
Correct Answer:
Verified
Q31: A factor is a variable that:<br>A) affects
Q32: Both the APT and the CAPM imply
Q33: Style portfolios are characterized by:<br>A) their stock
Q34: Suppose that we have identified three
Q35: Which of the following is true about
Q37: Systematic risk is defined as:<br>A) a risk
Q38: A criticism of the CAPM is that
Q39: Shareholders discount many corporate announcements because of
Q40: The unexpected return on a security, U,
Q41: A growth stock portfolio and a value