1: Option 2
The portfolio risk reduces when stocks are added randomly rather than selecting a particular stock for stocks from a particular sector.
2: statements 2,3 and 4 are true while statement 1 is false.
Statement 1: portfolio risk also takes into account the covariances between different stocks.
2: portfolio risk will decline with diversified stocks.
3: negatively correlated stocks reduce the portfolio risk since the returns are derived in opposite directions.
4: portfolio risk reduces when stocks are selected randomly rather than selecting a particular stock for stocks from a particular sector.
3. Portfolio risk and diversification A Aa A financial planner is examining the portfolios held by several of her c...
6. Portfolio risk and diversification A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? A portfolio consisting of about 30 randomly selected stocks A portfolio containing only Chevron stock A portfolio consisting of about 30 energy stocks Portfolio managers pick stocks for their clients' portfolios based on the investment objective of the portfolio and several other factors. One key consideration is each stock's...
3. Portfolio risk and diversification Aa Aa E A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? O O O A portfolio containing only Chevron stock A portfolio consisting of about 30 energy stocks A portfolio consisting of about 30 randomly selected stocks Portfolio managers pick stocks for their clients' portfolios based on the investment objective of the portfolio and several other factors....
3. Portfolio risk and diversification Aa Aa A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation ? A portfolio with 10 randomly selected international stocks A portfolio with 10 randomly selected U.S. stocks A portfolio with 10 randomly selected stocks from U.S. and international markets Portfolio managers pick stocks for their clients' portfolios based on the investment objective of the portfolio and several...
A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? a.) A portfolio's containing Microsoft, Apple, and Google stock b.) A portfolio consisting of about three randomly selected stocks from different sectors. c.) A portfolio containing only Microsoft stock. Portfolio managers pick stocks for their clients' portfolios based on the investment objective of the portfolio and several other factors. One key consideration is each...
2. Portfolio risk and diversification A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is likely to have the smallest standard deviation: A portfolio with 10 randomly selected stocks from U.S. and international markets A portfolio with 10 randomly selected international stocks A portfolio with 10 randomly selected U.S. stocks Portfolio managers pick stocks for their clients' portfolios based on the investment objective of the portfolio and several other factors....
5. Portfolio risk and diversification A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? A portfolio with 10 randomly selected U.S. stocks. A portfolio with 10 randomly selected international stocks. A portfolio with 10 randomly selected stocks from U.S. and international markets. Portfolio managers pick stocks for their clients’ portfolios based on the investment objective of the portfolio and several other factors. One...
A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? O A portfolio with 10 randomly selected international stocks. O A portfolio with 10 randomly selected stocks from U.S. and international markets. O A portfolio with 10 randomly selected U.S. stocks. Portfolio managers pick stocks for their clients' portfolios based on the investment objective of the portfolio and several other factors. One key consideration...
A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? A portfolio consisting of about three randomly selected stocks from different sectors. A portfolio containing Microsoft, Apple, and Google stock. A portfolio containing only Microsoft stock. Portfolio managers pick stocks for their clients’ portfolios based on the investment objective of the portfolio and several other factors. One key consideration is each stock’s contribution to...
A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? a) A portfolio with 10 randomly selected U.S. stocks b) A portfolio with 10 randomly selected stocks from U.S. and international markets c) A portfolio with 10 randomly selected international stocks ------------------------------------------ Portfolio managers pick stocks for their clients’ portfolios based on the investment objective of the portfolio and several other factors. One key...
A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is likely to have the smallest standard deviation: H ILLBILL A portfolio with 10 randomly selected Canadian stocks only A portfolio with 10 randomly selected international stocks only A portfolio with 10 randomly selected stocks from Canadian and international markets B ESTE INTRE TINERET KEMEDEL S TARS YAYASANYA TUZO Portfolio managers pick stocks for their clients portfolios based on the investment...