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Microsoft is the only stock in your portfolio. To reduce the risk you decide to add another stock in your portfolio. In fact you pick
Microsoft is the only stock in your portfolio. To reduce the risk you decide to add another stock in your portfolio. In fact you pick another stock that has a correlation coefficient of with Microsoft. Which risk do you reduce by adding the second stock to your portfolio? A Systematic risk B Company specific risk C Risk free rate risk D Technology risk None of the above
Microsoft is the only stock in your portfolio. To reduce the risk you decide to add another stock in your portfolio. In fact you pick another stock that has a correlation coefficient of with Microsoft. Which risk do you reduce by adding the second stock to your portfolio?
A Systematic risk
B Company specific risk
C Risk free rate risk
D Technology risk
None of the above
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