Multiple Choice
Portfolio theory can be dangerous to a small investor because:
A) he or she doesn't have much money to lose.
B) beta, the theoretical measure of risk, ignores business-specific risk, which is significant to an investor who doesn't have a large enough portfolio to diversify it away.
C) it makes investing seem more scientific than it really is.
D) the stock market is very unforgiving.
Correct Answer:
Verified
Correct Answer:
Verified
Q57: The risk remaining after extensive diversification is
Q131: If a firm receives bad news about
Q132: If the expected return on a stock
Q133: As a general rule, stocks offering higher
Q134: If a stock return is expected to
Q135: When a new stock is introduced into
Q137: For a portfolio made up of three
Q138: Why is the thinking behind the Capital
Q139: The return on equity investments:<br>A)is the risk
Q141: The coefficient of variation is a:<br>A)relative measure