Some diversification benefits can be achieved

Assignment Help Financial Management

Reference no: EM132068553

1. Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the securities is ________

Less than 1

Between 0 and 1

Less than or equal to 0

2. Increasing the number of stocks in a portfolio from 10 to 50 would most likely ______

Increase the systematic risk of the portfolio

Increase the unsystematic risk of the portfolio

Decrease the systematic risk of the portfolio

Decrease the variability of returns on the portfolio

Reference no: EM132068553

Questions Cloud

True about downward sloping yield curve : Which of the following is most likely to be TRUE about a downward sloping yield curve?

According to the capital asset pricing model : According to the capital asset pricing model (CAPM), fairly priced securities should have _______

The firm reduced its net working capital investment : The firm’s net capital spending for 2016 was $1,010,000, and the firm reduced its net working capital investment by $130,000.

Numerical outline with subcategories to complete assignment : Use a numerical outline with subcategories to complete this assignment.

Some diversification benefits can be achieved : Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the securities is

About this bonds price next year : If interest rates do not change over the year, which of the following is true about this bonds price next year?

How important are laws to protect the prosperity of business : How important are laws to protect the prosperity of businesses? How important are laws to protect society from the unintended costs of business?

Expects increase in interest rates : An investor who expects an increase in interest rates would minimize her capital loss by purchasing a bond

Considering two projects with the cash flows : Your division is considering two projects with the following cash flows (in millions). What are the projects' NPVs assuming the WACC is 5%?

User Account

All Pages