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

Verified
Correct Answer:
Verified
Q21: Shareholders discount many corporate announcements because of
Q22: If the expected rate of inflation was
Q23: Style portfolios are characterized by:<br>A) their stock
Q24: A value company is defined as one
Q25: Suppose that we have identified three important
Q27: Both the APT and the CAPM imply
Q28: Discuss the Fama-French three factor model; both
Q29: Suppose that we have identified three important
Q30: The single factor APT model that resembles
Q31: The systematic response coefficient for productivity,β<sub>p</sub>,would produce