A Portfolio of Three Different Stocks, Which of the Following

question 21

Multiple Choice

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

• 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 less than the betas of each of the individual stocks.
• C) The beta of the portfolio is greater than the beta of one or two of the individual stocks' betas.
• D) The beta of the portfolio can not be equal to 1.
• E) The riskiness of the portfolio is less than the riskiness of each of the stocks if they were held in isolation.

---

Definitions:

Conservation Performance

The ability to understand that certain properties of objects remain the same despite changes in the objects' form or arrangement.

Nova Scotia

A Canadian province located on the country's Atlantic coast, known for its maritime heritage and natural beauty.

Binet And Simon

Psychologists who developed the first intelligence test aimed at identifying children in need of academic assistance.

Defective Children

This term is outdated and considered offensive; it historically referred to children with physical, developmental, or cognitive disabilities.