The Systematic Risk (Beta)of a Portfolio Is ________ by Holding

question 27

Multiple Choice

The systematic risk (beta) of a portfolio is ________ by holding more stocks,even if they each had the same systematic risk.

• A)unchanged
• B)increased
• C)decreased
• D)eliminated
• E)doubled

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Definitions:

Additional Ton

A unit of measure representing an extra quantity of a product or material, beyond the original calculation or expectation, typically used in contexts related to shipping, production, or environmental impact.

Radishes

Edible root vegetables with a peppery flavor, often red, white, purple, or black, used in salads and as a garnish.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision; it represents the benefits missed when choosing one option over another.

Consumer Goods

Items bought by the typical consumer for personal use.