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Elodia [21]
3 years ago
15

For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio i

s less than the weighted average of the betas of the individual stocks. b. The riskiness of the portfolio is greater than the riskiness of each of the stocks if each was held in isolation. c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks. d. The riskiness of the portfolio is the same as the riskiness of each stock if it was held in isolation. e. The beta of the portfolio is larger than the weighted average of the betas of the individual stocks.
Business
1 answer:
Paraphin [41]3 years ago
8 0

Answer:

c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks.

Explanation:

The portfolio beta which is a measure of the systematic risk for a portfolio is calculated by taking the weighted average of betas of all the individual stocks that form up the portfolio. So the statement stating that the portfolio beta is equal to weighted average of individual stock betas is correct.

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The financial services department of your company offers a competitive leadership program. After screening and interviewing all
zmey [24]

Answer:

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Explanation:

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5 0
3 years ago
Your mom is thinking of retiring. her retirement plan will pay her either $250,000 immediately on retirement or $350,000 five ye
WITCHER [35]
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4 years ago
What information does a target cost-per-acquisition (cpa) bid strategy need in order to find the optimal cost-per-click (cpc) bi
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7 0
3 years ago
The news headline ​"Consultants replacing high school counselors​" deals with the​ ______​ question(s) of economics.
Ede4ka [16]

Answer:

The correct answer is <em>(A) how</em>.

Explanation:

The news headline ​"Consultants replacing high school counselors​" deals with the​ how​ question(s) of economics.

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Consultant is the professional who dominates a specific topic and uses his knowledge to help other people.

7 0
4 years ago
If the European subsidiary of a U.S. firm has net exposed assets of euro​200,000, and the euro increases in value from ​$1.22/eu
larisa86 [58]

Answer:

B. Gain $8,000

Explanation:

The calculation of exchange translation is shown below:-

Old exchange rate = Net exposed assets × Value of Euro

= 200,000 × ​$1.22

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