In a Portfolio of Three Randomly Selected Stocks,which of the Following

question 138

Multiple Choice

In a portfolio of three randomly selected stocks,which of the following could NOT be true,i.e.,which statement is false?

• A)The riskiness of the portfolio is less than the riskiness of each of the stocks if they were held in isolation.
• 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 lower than the lowest of the three betas.
• D)The beta of the portfolio is higher than the highest of the three betas.
• E)The beta of the portfolio is calculated as a weighted average of the individual stocks' betas.

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Definitions:

Cerebral Infarction

A type of stroke caused by a blockage in the blood vessels supplying blood to the brain, leading to death of brain tissue.

Upper Limbs

The parts of the human body extending from the shoulders to the hands, including the arms, forearms, wrists, and hands.

Sensory Information

Data received by sensory systems of the body, such as sight, sound, touch, taste, and smell.

Parietal Lobes

Regions of the brain located at the top and back of the head, involved in processing sensory information such as touch, temperature, and pain.