In a Portfolio of Three Different Stocks, Which of the Following

question 42

Multiple Choice

In a portfolio of three different stocks, which of the following could not be true?

• A) The riskiness of the portfolio is less than the riskiness of each of the stocks if they were held in isola¬tion.
• B) The riskiness of the portfolio is greater than the riskiness of one or two of the stocks.
• C) The beta of the portfolio is less than the beta of each of the individual stocks.
• D) The beta of the portfolio is greater than the beta of one or two of the individual stocks' betas.
• E) None of the above (that is, they all could be true, but not necessarily at the same time).

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Definitions:

Buying Process

The sequence of steps a consumer or organization follows from recognizing a need, through purchase, to post-purchase evaluation.

Environmental Considerations

Assessment of the environmental impacts associated with products or activities and the implementation of measures to reduce negative effects.

Supply Partnership

A long-term relationship between a buyer and a supplier characterized by mutual cooperation, shared risks, and investments to achieve joint value creation.

Mutually Beneficial Objectives

Objectives or goals set in a collaborative context that provide positive outcomes or advantages to all involved parties.