A. Which combination of companies is likely to provide the best diversification benefit? Ford, Toyota, Nissan, GM Facebook, Twitter, Google, Amazon Tyson, Sony, Apple, Delta
A. Which combination of companies is likely to provide the best diversification benefit?
| Ford, Toyota, Nissan, GM | ||
| Facebook, Twitter, Google, Amazon | ||
| Tyson, Sony, Apple, Delta | ||
| Walmart, Target, Home Depot, Lowes |
B. Risk factors that are expected to affect only a specific firm are referred to as:
| market risk. | ||
| diversifiable risk. | ||
| systematic risk. | ||
| risk premiums. |
C. Which one of the following risks is most important to a well-diversified investor in common stocks?
| Market risk | ||
| Specific risk | ||
| Unsystematic risk | ||
| Diversifiable risk |
D. Which one of the following risk types can be most eliminated by adding stocks to a portfolio?
Systematic risk
Unique risk
Market risk
Inflation rate risk
Please answer all parts
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Authors: Nico Van Der Wijst
1st Edition
1107029228, 978-1107029224
