Top Posters
Since Sunday
d
4
N
3
3
R
3
k
3
o
3
Z
3
j
3
s
3
d
3
J
3
1
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
Memphic Memphic
wrote...
Go to Answer
Posts: 728
Rep: 0 0
6 years ago
Which of the following statements is FALSE?
A) The volatility declines as the number of stocks in a portfolio grows.
B) An equally weighted portfolio is a portfolio in which the same amount is invested in each stock.
C) As the number of stocks in a portfolio grows large, the variance of the portfolio is determined primarily by the average covariance among the stocks.
D) When combining stocks into a portfolio that puts positive weight on each stock, unless all of the stocks are uncorrelated with the portfolio, the risk of the portfolio will be lower than the weighted average volatility of the individual stocks.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 61 times
1 Reply
Replies
Answer verified by a subject expert
anicidanicid
wrote...
#1
Top Poster
Posts: 694
Rep: 32 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Memphic Author
wrote...

6 years ago
Thank you, thank you, thank you!
annielin111
wrote...

Yesterday
This site is awesome
missnoname
wrote...

2 hours ago
Brilliant ツ
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1273 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 221
  
 411
  
 435
Your Opinion
Previous poll results: What's your favorite math subject?