7. Diversification and risk The graph shows the relationship between risk, measured as the standard...
70.2K
Verified Solution
Link Copied!
Question
Accounting
7. Diversification and risk The graph shows the relationship between risk, measured as the standard deviation of a stock portfolio's return, and the number of different stocks in the portfolio for a hypothetical stock market. RISK (Standard deviation of portfolio return) he 01 19 20 30 40 NUMBER OF STOCKS IN PORTFOLIO True or False: Increasing the number of stocks in a portfolio reduces market risk. True False Consider two stock portfolios Portfolio y consists of four different stocks from firms in different industries. Portfolio X consists of 10 different stocks, also from firms in different industries. The return on Portfolio Y is likely to be volatile than that of Portfolio X. Suppose a stock analyst recommends buying stock in the following companies Company Toyonda Saalvo Industry Automotive GMW Honsubishi Shexxon Automotive Automotive Automotive Oil and gas Oil and gas Aircraft Aircraft Mobron Airing Boebus Goohoo Technology Pharmaceutical Pherk Each of the following portfolios contains four of the stock picks. Which portfolio is the most diversified? Toyonda, Honsubishi, Boebus, Airing Toyonda, Saalvo, GMW, Honsubishi O Boebus, Alring, Shexxon, Mobron O Pherk, Toyonda, Goohoo, Shexxon
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.