Which One of the Following Would Tend to Indicate That

question 397

Multiple Choice

Which one of the following would tend to indicate that 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) An increase in the portfolio standard deviation.
• E) A decrease in the portfolio standard deviation.

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