A Stock That Is Risky on a Stand-Alone Basis

question 191

Multiple Choice

A stock that is risky on a stand-alone basis:

• A)is just as risky in a portfolio.
• B)is one that just about never produces a return that's higher than expected.
• C)is likely to produce a return that is substantially different from its mean or expected return.
• D)will have no effect on a portfolio's risk if it is added carefully.

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