subject
Business, 21.04.2020 00:56 rvkanneh1713

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 portfolio risk and its statistical relationship with the portfolio’s other stocks.

ased on your understanding of portfolio risk, identify whether each statement is true or false.

1. Because of the effects of diversification, the portfolio's risk is likely to be more than the average of all stocks' standard deviations
2. The unsystematic risk component of the total portfolio risk can be reduced by adding negatively correlated stocks to the portfolio
3. A portfolio's risk is likely to be smaller than the average of all stocks' standard deviations, because diversification lowers the portfolio's risk.

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 21:00
Identify the management, organization, and technology factors responsible for slow adoption rates of internal corporate social networks.when a company decides to launch a social networking program the management, all need to be on board with the launch. from the ceo down to the shift or assistant manager everyone needs to know its coming and be excited. the organization of such a launch needs to be mapped out, and training provided for the new systems. within the company, they need to make sure the technology at hand (computers, tablets, and company phones), are all compatible with the system. when a company launches a new system, and the find that the employees are not adopting it, they need to investigate the reasons. is the management at all level's onboard? did we organize the launch properly? do we have the right technology for the system? things can goeither way but if
Answers: 2
question
Business, 22.06.2019 20:50
Stormie zanzibar owns a bakery in the fictitious country of olombia. each month the government’s market ministry mails her a large list of the regulated price of goods which include products like bread, muffins and flat bread. the list also dictates the types of goods she can sell at the bakery and what she is to charge. because of the regulations placed on these goods, stormie has increased her production of sweets, pies, cakes, croissants and buns and decreased her supply of breads, muffins and flat bread. she has taken these steps because the sweet goods’ prices are not government controlled. stormie zanzibar lives under what type of economy?
Answers: 3
question
Business, 23.06.2019 01:00
Sarah is an accountant with desires to open her own business. she is looking for office space at a reasonable rate along with internet service. of the conditions that need to be put in place for the entrepreneurial ecosystem, she needs
Answers: 1
question
Business, 23.06.2019 01:30
Lee earns $1,482 of interest in 270 days after making a deposit of $15,200. find the interest rate.
Answers: 1
You know the right answer?
Portfolio managers pick stocks for their clients’ portfolios based on the investment objective of th...
Questions
question
Mathematics, 30.07.2019 16:00
Questions on the website: 13722363