Multiple Choice
Which of the following portfolios would have no diversification benefits?
A) A portfolio consisting of two perfectly positively correlated stocks
B) A portfolio consisting of two perfectly negatively correlated stocks
C) A portfolio consisting of two uncorrelated stocks
D) A portfolio consisting of two stocks with the same standard deviation of returns
E) A portfolio consisting of two stocks with the same beta coefficient
Correct Answer:
Verified
Correct Answer:
Verified
Q39: Which of the following statements about correlation
Q40: The next expected dividend for Stock P
Q41: The expected returns for Stocks A, B,
Q42: Which of the following statements about beta
Q43: The risk-free rate is 5 percent and
Q45: A stock's standard deviation indicates how the
Q46: Other things held constant, a risk-averse investor
Q47: Dividing the standard deviation of the returns
Q48: The larger the standard deviation of returns
Q49: Which of the following statements gives the