Risky on a stand-alone basis

Reference no: EM131063246

A stock that is risky on a stand-alone basis: a. is just as risky in a portfolio. b. is one that just about never produces a return that's higher than expected. c. is likely to produce a return that is substantially different from its mean or expected return. d. will have no effect on a portfolio's risk if it is added carefully.

Reference no: EM131063246

Questions Cloud

Competitive strategies organizations : Describe competitive advantage and the competitive strategies organizations use to get it. Please reference

What is your estimate of the stock current price : A company currently pays a dividend of $1.5 per share (D0 = $1.5). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years, then at a constant rate of 7% thereafter. What is your estimate of the stock's cu..

Problem regarding the social network analysis : Do you think the direct or indirect approach to doing a social network analysis is the most accurate?

Discuss the nature of active galaxies : Using information from the textbook and the internet, research the two theories about quasar redshift. Explain why, "Almost all astronomers now agree that quasar redshifts do indeed fit the Hubble law."

Risky on a stand-alone basis : A stock that is risky on a stand-alone basis: a. is just as risky in a portfolio. b. is one that just about never produces a return that's higher than expected. c.

Creates protective put position by buying one share of stock : An investor creates a protective put position by buying one share of a stock at $50 and buying a European put option on the stock with strike price $45 at $1.25. What is his profit if he holds his position until maturity of the option and the stock p..

Net present value if brisbane keeps using its current system : The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $208 with a resulting contribution margin of $70. What is the Year 2 cash flow if Brisbane keeps using its current system? What is the Year 2 cash flo..

What are the real numbers x : Every complex number can be expressed in the form a + bi, where a and b are real numbers and i^2 = -1. Which of the following is equivalent to (1 + ci)2. What are the real numbers x, if any that are in the domain of the function f(x) = -x^5 but not..

Closing case counting seconds-measuring scans : One of the most important jobs in retailing is the person who takes the customer's money, in part because paying for their items is about the last thing customers do before leaving.

User Account

All Pages