Question
Risk associated with a portfolio is always less than the
weighted average of risks of individual items in the portfolio due to _______                              I.       Diversification of risks                            II.       The fact that all accounts in a portfolio have different Beta                           III.       The fact that risks in all the accounts in a portfolio will not materialize simultaneouslySolution
Risk associated with a portfolio is always less than the weighted average of risks of individual items in the portfolio due to diversification of risks. This means that the risk is spread out as all individual items in a portfolio will not behave in unidirectional manner or the risks in all the individual items in a portfolio will not materialize simultaneously. The market Beta of each item is also different and therefore, the market risk associated with each is also different thereby reducing the overall impact on a well diversified portfolio.
Which of the following is divisible by both 4 and 8?
Fruit ripening hormone is
Which state or union territory received the GI tag for Basholi painting?
The authorization for the withdrawal of funds from the Consolidated Fund of India must come from;
Which of the following is/are types of strike?
     I.       Hunger Strike
   II.       Go-slow strike
Match the following Employer Organisations with their year of formation:
The least perfect square number which is divisible by 9, 12, 15, 24:
Which one of the following perspectives of industrial relations is based on the assumption that both the parties strive (and have opportunity) to exerc...
Which of the following statements is/are related to ecosystem?
(i) It consists of biotic components comprising living organisms.
(ii) All ...