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

question 2

Multiple Choice

In 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 cannot 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.

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Definitions:

Priapism

A medical condition involving a persistent and often painful erection of the penis that lasts for hours and is unrelated to sexual arousal.

Hallucinogenic

Substances that cause hallucinations—perceptions or experiences that differ from reality—and alter a person's thinking, sense of time and emotions.

Eating Disorder

Serious and often fatal illness that causes disturbances to a person’s eating behaviors.

Overdieting

Excessive dieting that can lead to nutritional deficiencies and health problems.