Te risk-reducing benefits of diversification do not occur

Assignment Help Finance Basics
Reference no: EM13484206

Which statement about portfolio diversification is correct?

a. Proper diversification can reduce or eliminate systematic risk.

b. Diversification reduces the portfolio's expected return because it reduces a portfolio's total risk.

c. As more securities are added to a portfolio, total risk typically would be expected to

fall at a decreasing rate.

d. The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolio.

Reference no: EM13484206

Questions Cloud

Describe the terminal value of the following portfolio a : describe the terminal value of the following portfolio a newly entered into long forward contract on an asset and a
Portfolio theory as described by markowitz is most : portfolio theory as described by markowitz is most concerned witha. the elimination of systematic risk.b. the effect of
Determine the correct amounts for net income total assets : at the end of october the first month of operations the following selected data were taken from the financial
Clean laboratories produces biodegradable liquid detergents : clean laboratories produces biodegradable liquid detergents that leave no soap film.the production process has been
Te risk-reducing benefits of diversification do not occur : which statement about portfolio diversification is correct?a. proper diversification can reduce or eliminate systematic
Journalize the adjusting entries and label them as accruals : journalize the adjusting entries and label them as accruals or deferrals adding accounts as needed.a. unexpired
Trevor price bought 10-year bonds issued by harvest foods : trevor price bought 10-year bonds issued by harvest foods five years ago for 950.97. the bonds make semiannual coupon
What are the expected returns for stocks x and : what are the expected returns for stocks x and y?nbspstock xstock y 185
The firms net capital spending for 2014 was 1030000 and the : the december 31 2013 balance sheet of schism inc. showed long-term debt of 1435000 147000 in the common stock account

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd