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:

Cooperative

An organization owned and operated for the benefit of those using its services, with members having a democratic control.

Value-Based Marketing

A marketing strategy focusing on providing products or services based on values that customers find important, often related to ethical, environmental, or social concerns.

Consumer's Point

The perspective or standpoint of the consumer, concerning their preferences, opinions, and behaviors towards products or services.

Entire Business Process

The comprehensive set of end-to-end activities and tasks involved in creating and delivering a product or service to customers.