Statements about portfolio investment risk

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Which of the following statements about portfolio investment risk is false?

a. The beta coefficient measures the risk of investments held in portfolios.

b. A beta greater than 1.0 indicates that the investment has greater risk than that of the entire portfolio.

c. Standard deviation measures the risk of investments held in portfolios.

d. A beta less than 1.0 indicates that the investment has less risk than that of the entire portfolio.

e. The beta of a portfolio is a weighted average of the betas of the component investments.

Reference no: EM13908893

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