The most fundamental proposition of modern portfolio theory is that
A) investment risk is reduced by investing in on security.
B) the smaller the standard deviation is, the larger is the risk of a portfolio.
C) even though an asset is risky in isolation, when combined with other assets the risk of the portfolio is less, perhaps even zero.
D) uncertain outcomes make for risky investments.
C
Economics
You might also like to view...
Refer to Table 19-19. Given the information above, calculate the GDP deflator in 2015
A) 87 B) 95 C) 105 D) 114
Economics
The XYZ Company has estimated expected cash flows for 1996 to be as follows:
Probability Cash flow .10 $120,000 .15 140,000 .50 150,000 .15 180,000 .10 210,000 Calculate: a. expected value b. standard deviation c. coefficient of variation d. the probability that the cash flow will be less than $100,000
Economics