Portfolio diversification eliminates: Multiple Choice all investment risk. the portfolio risk premium. market risk. unsystematic risk. the reward for bearing risk.
1 answer
Question:
Portfolio diversification eliminates: Multiple Choice all investment risk. the portfolio risk premium. market risk. unsystematic risk. the reward for bearing risk.
Answers
Answer:Unsystematic riskExplanation:The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks
Similar Solved Questions
1 answer
Marcus has some bills to pay. His checking account balance is $1,746.25. His savings account balance is $5,600. He is going to pay the following bills today from his checking account: Internet: $59.25 Garbage: $45.17 Electricity: $137.56 What is the total of Marcus's bills? How much will Marcus have left in his checking account after he pays his bills?
Marcus has some bills to pay. His checking account balance is $1,746.25. His savings
account balance is $5,600. He is going to pay the following bills today from his
checking account:
Internet: $59.25
Garbage: $45.17
Electricity: $137.56
What is the total of Marcus's bills?
How much will Marcus hav...
1 answer
This is an identifying functions lesson someone please help
this is an identifying functions lesson someone please help...
1 answer
Look closely at these 2 maps of the ancient China, each from a different time period explain how cultural diffusion could help the Qin dynasty second valve cover to more Land area than the Zhoudynasty first map by 210 BCE also explain how geography affects such a change
Look closely at these 2 maps of the ancient China, each from a different time period explain how cultural diffusion could help the Qin dynasty second valve cover to more Land area than the Zhoudynasty first map by 210 BCE also explain how geography affects such a change...
1 answer
How often should we take a bath to remain healthy
how often should we take a bath to remain healthy...
1 answer
2. Following are the marks obtained by a batch of 10 students in acertain class tests in statistics (X) and accountancy (Y).1 2Roll No.3 45 6 7 8 9 10X 63 64 62 32 30 60 47 46 35 28Y 68 66 35 42 26 85 44 80 3372In which subject is the level of knowledge of the students higher?
2. Following are the marks obtained by a batch of 10 students in acertain class tests in statistics (X) and accountancy (Y).1 2Roll No.3 45 6 7 8 9 10X 63 64 62 32 30 60 47 46 35 28Y 68 66 35 42 26 85 44 80 3372In which subject is the level of knowledge of the students higher?...
1 answer
2.)what is the place value of 7 in 970 123 8853.)in 292.145,what number is in the thousands place? 4.)what is the place value of 9 in 6547.965?5.)in 476.8976,what is thevalue of underline digi?...si number 7 po naka underline.
2.)what is the place value of 7 in 970 123 8853.)in 292.145,what number is in the thousands place? 4.)what is the place value of 9 in 6547.965?5.)in 476.8976,what is thevalue of underline digi?...si number 7 po naka underline....
1 answer
Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax-equivalent value of:
Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax-equivalent value of:...
1 answer
In Romeo and Juilet find evidence showing that the adolescent brains are responsible for Romeo and Juliet's death
In Romeo and Juilet find evidence showing that the adolescent brains are responsible for Romeo and Juliet's death...
1 answer
Although Larry never went out for any sport at his high school, he could be seen in the stands of every game wearing the school’s colors and cheering wildly for his team. When they won, he felt exhilarated and would tell people, "We won! I knew we could do it," as if he had played the whole game himself. Larry is exhibiting which defense mechanism?
Although Larry never went out for any sport at his high school, he could be seen in the stands of every game wearing the school’s colors and cheering wildly for his team. When they won, he felt exhilarated and would tell people, "We won! I knew we could do it," as if he had played the whole game h...
1 answer
Which states are home to more than half of the foreign-born population? 1)Florida, California, and Texas 2)New York, Arizona, and California 3)California, New York, and Texas
Which states are home to more than half of the foreign-born population?
1)Florida, California, and Texas
2)New York, Arizona, and California
3)California, New York, and Texas...
1 answer
A bicycle travels 15km in 30 mins. What is the average speed? Show all work to support answer.
A bicycle travels 15km in 30 mins. What is the average speed? Show all work to support answer....
2 answers
¿Cómo se dice "We're going by bike" en español? A. Vamos en bicicleta. B. Queremos andar en bicicleta. C. Vamos a pie. D. Voy en bicicleta
¿Cómo se dice "We're going by bike" en español?
A. Vamos en bicicleta.
B. Queremos andar en bicicleta.
C. Vamos a pie.
D. Voy en bicicleta...
1 answer
How many molecules are there in 237 grams of CCl4
how many molecules are there in 237 grams of CCl4...
1 answer
If (2x-1) is a factor of the polynomial P(x) = 2x^3-5x^2- Kx +3 find value of k.
If (2x-1) is a factor of the polynomial
P(x) = 2x^3-5x^2- Kx +3
find value of k....