Multiple Choice
Consider the theory of active portfolio management. Shares A and B have the same beta and the same positive alpha. Share A has higher non-systematic risk than share B. You should want ________ in your active portfolio.
A) equal proportions of shares A and B
B) more of Share A than Share B
C) more of Share B than Share A
D) more information is needed to answer this question
Correct Answer:
Verified
Correct Answer:
Verified
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