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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.


Definitions:

Constant Marginal

A condition where the marginal gain or cost of producing an additional unit remains the same, regardless of the level of production.

Average Cost

Average cost, also known as unit cost, is the total cost of production divided by the number of units produced.

Maximize Profits

A business goal to achieve the highest possible profit by optimizing sales revenue and minimizing costs.

Constant Marginal

Pertains to a situation where the additional cost or benefit of producing one more unit of a good or service remains unchanged.

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