Equally weighted portfolio of securities is diversified

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Reference no: EM132071866

1. Securities A, B and C have standard deviations of 32 percent, 25 percent and 30 percent. An equally weighted portfolio of these securities is diversified if its standard deviation is

(a) more than 25 percent

(b) less than 30 percent

(d) equal to 25 percent

2. Apple, Amazon and Adobe's stock prices are $145, $976, and $138, respectively while their market capitalizations are $757 billion, $467 billion and $68 billion. What would be the weight of Adobe in a price-weighted portfolio of these stocks?

(a) 33.33%

(b) 10.96%

(d) 8.11%

Reference no: EM132071866

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