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 correctly matches the scientist with their discovery?
Select the incorrect statement :
Which of the following statements is not correct for Restriction enzymes ?
Which cellular organelle is referred to as the "storehouse of the cell"?
Which of the following is not an example of asexual reproduction?
_______is a pure substance.
Which of the following is NOT a symptom of Amoebiasis?
Match the following placental mammals with their marsupial counterparts:
The terminal part of the carpel in a flower, which may be sticky, is the:
Measles is caused by ______.
