Multiple Choice
Which of the following is true regarding random diversification?
A) Investment characteristics are considered important in random diversification
B) The benefits of random diversification eventually no longer continue as more securities are added
C) Random diversification,if done correctly,can eliminate all risk in a portfolio
D) Random diversification eventually removes all company specific risk from a portfolio
Correct Answer:

Verified
Correct Answer:
Verified
Q21: A probability distribution shows the likely outcomes
Q26: Provide an example of two industries that
Q30: Which of the following portfolios has the
Q32: The number of covariances in the Markowitz
Q33: Why is more Difficult to put Markowitz
Q35: The relevant risk for a well-diversified portfolio
Q35: -------------------is concerned with the interrelationships between security
Q39: The correlation coefficient explains the cause in
Q40: Owning two securities instead of one will
Q65: In the case of a four-security portfolio,