A Portfolio of Three Randomly Selected Stocks, Which of the Following

question 107

Multiple Choice

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 greater than the riskiness of one or two of the stocks.
• B) The beta of the portfolio is lower than the lowest of the three betas.
• C) The beta of the portfolio is higher than the highest of the three betas.
• D) None of the above statements is obviously false, because they all could be true, but not necessarily at the same time.
• E) The riskiness of the portfolio is less than the riskiness of each of the stocks if they were held in isolation.

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Definitions:

Transport

The movement of people, animals, or goods from one location to another through various modes such as road, rail, air, or sea.

Price of Coconuts

This refers to the market value at which coconuts can be bought or sold, influenced by factors such as supply, demand, and geographical location.

Coconut Suppliers

Businesses or individuals that provide coconuts to the market, either through direct sale or distribution channels.

Near Future

A time period that is shortly ahead, typically referring to events that are expected to happen soon.