Diversification of portfolio can ? – McqOptions

MCQOPTIONS

1.	Diversification of portfolio can ?
A.	reduce aggregate risk
B.	eliminate all risk
C.	increase the standard deviation of the portfolio’s return
D.	reduce idiosyncratic risk
Answer» E.

Discussion

No Comment Found

Related MCQs

Which of the following should cause the price of a share of stock to rise ?
Which of the following reduces risk in a portfolio the greatest ?
Which of the following is an example of moral hazard ?
Which of the following does not help reduce the risk that people face ?
The study of a company’s accounting statements and future prospects to determine its value is known as ?
The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?
JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ?
It is difficult for an actively managed investment fund to outperform an index fund because ?
If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?
If the efficient markets hypothesis is true, then ?