Which of the Following Statements Is CORRECT

question 45

Multiple Choice

Which of the following statements is CORRECT?

• A) Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.
• B) A large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a 1-stock portfolio if that one stock has a beta less than 1.0.
• C) A large portfolio of stocks whose betas are greater than 1.0 will have less market risk than a single stock with a beta = 0.8.
• D) If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.
• E) A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected.

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A facility for receiving, storing, and redistributing goods to destinations or customers, typically part of a larger supply chain network.

Television Sets

Devices designed to receive and display broadcast signals, allowing viewers to watch television programs.

Television Sets

Electronic devices designed to receive broadcast signals and display television programming and other audiovisual content.

Arizona

A state located in the southwestern region of the United States, known for its desert landscape, the Grand Canyon, and rich Native American history.