In a portfolio of three randomly selected stocks, which of the following could NOT be true, i.e., which statement is false?
A. The riskiness of the portfolio is less than the riskiness of each of the stocks if they were held in isolation.
B. The riskiness of the portfolio is greater than the riskiness of one or two of the stocks.
C. The beta of the portfolio is lower than the lowest of the three betas.
D. The beta of the portfolio is higher than the beta of one or two of the stocks in the portfolio.
E. The beta of the portfolio is calculated as a weighted average of the individual stocks' betas.
Answer: C
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