Diversification
a. increases the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is higher.
b. increases the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is lower.
c. reduces the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is higher.
d. reduces the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is lower.
d
You might also like to view...
If the government collects taxes and makes expenditures of a smaller amount, bank reserves
A) are unaffected. B) may rise or fall. C) rise. D) fall.
Refer to Figure 8.1. At the profit-maximizing level of output, AVC is
A) $22. B) $26. C) $30. D) $32. E) $40.
The British economist most often associated with the issue of economic rent for land was
A) John Maynard Keynes. B) Jeremy Bentham. C) A. W. Phillips. D) David Ricardo.
Oligopoly is characterized by all of the following except
A. some industries that produce identical products. B. frequent price wars. C. high barriers to entry. D. prices that are above the minimum of the ATC curve.