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QUESTION 4 Which of the following is true about diversification? diversification increases alpha diversification eliminates risk diversification increases Sharpe ratios diversification increases returns QUESTION 6
QUESTION 4
Which of the following is true about diversification?
diversification increases alpha | ||
diversification eliminates risk | ||
diversification increases Sharpe ratios | ||
diversification increases returns |
QUESTION 6
If an investor that owns a portfolio with 3 stocks increases their portfolio to 30 stocks, which of the following is MOST LIKELY to happen?
the Sharpe ratio would decrease | ||
the Sharpe ratio would increase | ||
return would increase | ||
risk would increase |
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