Which One of the Following Is Most Likely Correct for a Diversified

question 82

Multiple Choice

Which one of the following is most likely correct for a diversified stock portfolio that exhibits a higher standard deviation than the market index?

• A) The portfolio contains fairly aggressive stocks.
• B) The portfolio plots below the security market line.
• C) The portfolio's beta is less than 1.0.
• D)The portfolio contains a significant amount of unique risk.

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