Multiple Choice
Which one of the following would indicate a portfolio is being effectively diversified?
A) an increase in the portfolio beta
B) a decrease in the portfolio beta
C) an increase in the portfolio rate of return
D) a decrease in the portfolio standard deviation
Correct Answer:

Verified
Correct Answer:
Verified
Q11: Total risk can be divided into:<br>A) standard
Q20: A portfolio will usually contain:<br>A) one riskless
Q23: Suppose the MiniCD Corporation's common stock has
Q24: A portfolio contains four assets. Asset 1
Q26: If you have a portfolio of two
Q29: For a highly diversified equally weighted portfolio,
Q33: Beta measures:<br>A) the ability to diversify risk.<br>B)
Q40: Why are some risks diversifiable and some
Q59: Draw and explain the relationship between the
Q60: If the correlation between two stocks is