Which one of the following actions will tend to increase the systematic risk of

ID: 2636586 • Letter: W

Question

Which one of the following actions will tend to increase the systematic risk of a portfolio?

the sale of U.S. Treasury bills and an offsetting purchase of a stock with a beta of 0.21

the sale of U.S. Treasury bills with the proceeds held in cash

the sale of a stock with a beta of .67 and an offsetting purchase of U.S. Treasury bills

the sale of high-beta stock and an offsetting purchase of a low-beta stock

the sale of a stock with the proceeds held in cash

the sale of U.S. Treasury bills and an offsetting purchase of a stock with a beta of 0.21

the sale of U.S. Treasury bills with the proceeds held in cash

the sale of a stock with a beta of .67 and an offsetting purchase of U.S. Treasury bills

the sale of high-beta stock and an offsetting purchase of a low-beta stock

the sale of a stock with the proceeds held in cash

Which one of the following actions will tend to increase the systematic risk of a portfolio?

Answer

the sale of U.S. Treasury bills and an offsetting purchase of a stock with a beta of 0.21

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