1 which of the following is most likely to be true for a, Ask an Expert

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1. Which of the following is most likely to be true for a portfolio of 40 randomly selected stocks?

a. The riskiness of the portfolio is the same as the riskiness of each stock if it was held in isolation.

b. The beta of the portfolio is less than the average of the betas of the individual stocks.

c. The beta of the portfolio is equal to the average of the betas of the individual stocks.

d. The beta of the portfolio is larger than the average of the betas of the individual stocks.

e. The riskiness of the portfolio is greater than the riskiness of each of the stocks if each was held in isolation.

2. If the currency is selling at premium in the forward market then it must be the case that the domestic interest rate is higher than the foreign interest rate

True

False

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92807073

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