Shifting funds from the risky portfolio to the risk-free asset is the simplest way to reduce risk.

Question:

Shifting funds from the risky portfolio to the risk-free asset is the simplest way to reduce risk.

Other methods involve diversification of the risky portfolio and hedging. We take up these methods in later chapters. p-936

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

Question Posted: