In a Portfolio of Three Different Stocks, Which of the Following

question 5

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:

Leader Behaviour

Actions and attitudes demonstrated by a leader, influencing the group's activities and the environment.

Empowering Leadership

Implementing conditions that enable power to be shared with employees.

Followers

Individuals who support and are guided by a leader or a belief system, often contributing to the fulfillment of shared objectives.

Vision

The ability to think about or plan the future with imagination or wisdom.