itssemily5212 itssemily5212

11-08-2020
Business

contestada

Decreasing the number of stocks in a portfolio from 50 to 10 would likely ________________. A. increase the systematic risk of the portfolio B. increase the unsystematic risk of the portfolio C. increase the return of the portfolio D. decrease the variation in returns the investor faces in any one year

Respuesta :

Priatouri Priatouri

14-08-2020

Answer:

Option B, Increase the unsystematic risk of the portfolio, is the right answer.

Explanation:

Option B is correct because unsystematic risk refers to the risk that can be reduced drastically by diversifying the investment or portfolio. A company can reduce such risk by investing in a large range of projects or in large companies. Therefore, if the diversification decreases, as we can see in the question that the stock portfolio decreased from 50 to 10 then the unsystematic risk will increase.

Answer Link

Otras preguntas

How do you calculate change in position? A. initial position times two B. final position plus initial position C. final position minus initial position D.

What part of the eye focuses light on to the retina?

Please Factor: 900 - 1 =

What are action words?

which of the following is the explicit formulas for the geometric sequence? A. an= 9(1/3)n+1 B. an= 9(3)n-1 C. an= 9(1/3)n-1 D. an= 9(3)n+1

Molly can read 4/5 of the page in the time it take kayla to read one page.how many pages will it take Kayla to read in the time it takes Molly to read a full pa

what impact did Douglass experience as a slave have on the development of the anti-slavey movement?

what is the standard form if this graph

Which three r's are associated with decreasing the world's waste? recycle reduce report resource reuse

Which development was a result of increased urbanization during the Industrial Revolution? A. Decreased mortality rates B. Decreased fertility rates C.