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

question 67

Multiple Choice

In a portfolio of three different shares, which of the following could not be true?

• A) The riskiness of the portfolio is less than the riskiness of each of the shares if they were held in isolation.
• B) The riskiness of the portfolio is greater than the riskiness of one or two of the shares.
• C) The beta of the portfolio is less than the beta of each of the individual shares.
• D) The beta of the portfolio is greater than the beta of one or two of the individual share's betas.
• E) None of the above (i.e., they all could be true, but not necessarily at the same time).

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Definitions:

Spatial Memories

Memories that involve the ability to recognize the location of objects, direction, and the physical environment in three-dimensional space.

Hypothalamus

A region of the brain that plays a crucial role in many essential functions, including hormone release and regulation of body temperature.

Neuron

A neuron is a nerve cell that is the basic building block of the nervous system, responsible for receiving, processing, and transmitting information through electrical and chemical signals.

Axon

An extended part of a neuron that transmits impulses away from the neuron's cell body.