In a Portfolio of Three Randomly Selected Stocks, Which of the Following

question 68

Multiple Choice

In a portfolio of three randomly selected stocks, which of the following could NOT be true; i.e., which statement is falseσ

• A) the standard deviation of the portfolio is greater than the standard deviation of one or two of the stocks.
• B) the beta of the portfolio is lower than the lowest of the three betas.
• C) the beta of the portfolio is equal to one of the three stock's betas.
• D) the beta of the portfolio is equal to 1.
• E) the standard deviation of the portfolio is less than the standard deviation of each of the stocks if they were held in isolation.

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Definitions:

Traditional Principles

Basic tenets or rules that have been established over time, guiding actions and beliefs in various contexts.

Promotional Programs

Marketing strategies designed to inform, persuade, or remind target audiences about a product or service to increase awareness or sales.

Delegate Authority

The process of assigning decision-making power and responsibilities from a higher-ranking official to a subordinate or group.

Intern Responsibility

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