The Systematic Risk (Beta) of a Portfolio Is by Holding

question 69

Multiple Choice

The systematic risk (beta) of a portfolio is by holding shares in more firms, even if they each had the same systematic risk.

• A) increased
• B) decreased
• C) unchanged
• D) cannot say for sure

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Definitions:

Hypnosis

A trance-like state characterized by heightened focus, concentration, and suggestibility, often used for therapeutic purposes.

Unconscious Mind

Part of the mind that is not within an individual's immediate awareness, containing thoughts, memories, and desires believed to influence behavior.

Unconscious Thought

Mental processes that occur without conscious awareness, influencing behaviors, decisions, and emotions.

Conscious Thought

Mental processes and concepts that are within an individual's awareness and can be deliberately considered or manipulated.