FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a stock portfolio is well diversified, then the portfolio variance: will be a weighted average of the variances of the individual securities in the

image text in transcribed
If a stock portfolio is well diversified, then the portfolio variance: will be a weighted average of the variances of the individual securities in the portfolio. . may be less than the variance of the least risky stock in the portfolio. . will be an arithmetic average of the variances of the individual securities in the portfolio. c. will equal the variance of the most volatile stock in the portfolio. D

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Entrepreneurial Finance

Authors: J. Chris Leach, Ronald W. Melicher

7th Edition

0357442040, 978-0357442043

More Books

Students also viewed these Finance questions

Question

★★★★★
The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement...

Answered: 1 week ago

Question

★★★★★
Suppose that a certain disease is present in 10% of the population, and that there is a screening test designed to detect this disease if present. The test does not always work perfectly. Sometimes...

Answered: 1 week ago

Question

★★★★★
=+A plot of the residuals vs. predicted values showed: 2.5 0 2.5 5.0 Residuals (mpg) 12.5 25.0 37.5 50.0 Predicted Values (mpg)

Answered: 1 week ago

Question

★★★★★
On January 1, 2010, Cayce Corporation acquired 100 percent of Simbel Company for consideration paid of $126,000, which was equal to fair value. Cayce is a U.S.-based company headquartered in Buffalo,...

Answered: 1 week ago

Question

★★★★★
No need to follow textbook format for parts (ii) and (iii). You can use your own format for answering them. LTC manufacturers an extensive range of high-quality brass and chrome taps and has an...

Answered: 1 week ago

Question

★★★★★
Your remodeled home will have an open floor plan such that the dining area and living area will all be a single large rectangular room with no walls in between. The dimensions of the room are You...

Answered: 1 week ago

Question

★★★★★
Fall Guys has amassed 50 million players two weeks after being relaunched as a free-to-play title. Mediatonic broke the news on social media, with the latest milestone arriving shortly after the...

Answered: 1 week ago

Question

★★★★★
Ransomware attacks have increased during the pandemic, and, as a result, the damage to corporations can be great. If the data of millions of customers is compromised, the market pressure alone can...

Answered: 1 week ago

Question

★★★★★
What's the Best Approach to Data Analytics? Pl go through this HBR article very carefully and by Tom O'Toole MARCH 02, 2020 JOE DANIEL PRICE/GETTY IMAGES In practicing data analytics for more than...

Answered: 1 week ago

Question

★★★★★
What should Disney do to mitigate the losses stemming from the two scandals and to minimize the likelihood of such reputation-threatening incidents recurring in the future?

Answered: 1 week ago

Question

★★★★★
Calculate the productivity for the following operations: a.Three employees process 600 insurance policies in a week. They work 8 hours per day, 5 days per week.

Answered: 1 week ago

Question

★★★★★
2. What abilities are possible because humans use symbols?

Answered: 1 week ago

Question

★★★★★
1. How are language and thought related?

Answered: 1 week ago

Question

★★★★★
4. How do rules guide verbal communication?

Answered: 1 week ago

Previous Question Next Question