A diversified portfolio increases systematic risk reduces unsystematic risk redu
ID: 2639180 • Letter: A
Question
A diversified portfolio
increases systematic risk
reduces unsystematic risk
reduces systematic risk
increases unsystematic risk
The risk-adjusted required rate of return excludes
the risk-free rate
the stock's beta
the stock's standard deviation
the anticipated return on the market
The yield to maturity on a bond is
interest plus price appreciation (or loss) achieved by holding the bond to maturity
the bond's coupon divided by the principal amount
the price appreciation earned by the bond
the interest paid divided by the price of the bond
a.increases systematic risk
b.reduces unsystematic risk
c.reduces systematic risk
d.increases unsystematic risk
Explanation / Answer
Hi,
Please find the answer as follows;
a) reduces unsystematic risk
b) the risk-free rate
c) interest plus price appreciation (or loss) achieved by holding the bond to maturity
Thanks.
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