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.
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.
Economic efficiency implies an economic state in which every resource is optimally allocated to serve each individual in the best way while minimizing waste and inefficiency.
<span>I believe it would because that would mean it’s only $12 a person and if the event is buffet style or open bar people will most likely eat more than $12 worth of food.</span>
