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

question 97

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 beta of one or two of the stocks in the portfolio.
• E) The beta of the portfolio is calculated as a weighted average of the individual stocks' betas.

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Definitions:

Spinal Cord

a vital part of the central nervous system located within the spine, transmitting nerve signals between the brain and the rest of the body.

Spatial Attention

The ability to prioritize visual processing on a particular spatial location in the field of view to enhance detection and analysis of relevant information.

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information regarding the location of parts of the body, as well as interpreting visual information and processing language and mathematics.

Sensory Input

Information received by sensory receptors from the external and internal environments, which is then processed by the nervous system.