Multiple Choice
Diversification
A) increases the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is higher.
B) increases the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is lower.
C) reduces the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is higher.
D) reduces the likely fluctuation in a portfolio's return.Thus,the likely standard deviation of the portfolio's return is lower.
Correct Answer:
Verified
Correct Answer:
Verified
Q60: Which of the following methods of picking
Q61: The performance of index funds<br>A)usually falls short
Q62: A pharmaceutical company unexpectedly announces that it
Q63: When a person engages in detailed analysis
Q64: Which of the following is correct?<br>A)Risk-averse people
Q65: During a financial crisis the possibility of
Q67: The efficient markets hypothesis implies that<br>A)building a
Q68: Suppose fundamental analysis indicates that XYZ Corporation's
Q69: Writing in The Wall Street Journal in
Q70: Suppose that interest rates unexpectedly rise and