Which of the Following Statements Is Most Correct

question 143

Multiple Choice

Which of the following statements is most correct?

• A)the variance of a portfolio is a weighted average of asset variances.
• B)the benefits of diversification are greatest when asset returns have zero correlations.
• C)the market portfolio truly eliminates all unsystematic risk.
• D)beta is the measure of an asset's unsystematic risk.

---

Definitions:

Reader Benefits

The advantages or valuable outcomes that a reader can gain from reading a document, book, or article.

Main Point

The central or most important idea of a discussion, presentation, or piece of writing.

Beneficial To The Reader

Something that provides value or utility to the person engaging with the content.

Informative Letter

A written communication that conveys information or details about a particular topic or event.