Adding a Low Beta Security to a Two-Security Portfolio Will

question 38

Multiple Choice

Adding a low beta security to a two-security portfolio will not reduce the

• A) portfolio beta.
• B) total portfolio risk.
• C) market variance.
• D) standard deviation of the random error.

---

Definitions:

Chart Tip

A brief explanatory note or data label that appears when a user hovers over or selects an element within a chart.

Legend

A key or explanation of symbols and colors used in charts, maps, or diagrams.

Ribbon Commands

UI elements in software, particularly Microsoft applications, that group commands and features under tabs on the ribbon toolbar.

Toggles

Buttons or switches that can be clicked or pressed to alternate between two or more states or modes.