Which of the following is not a determinant of the risk of a portfolio? A) the a

Question

Which of the following is not a determinant of the risk of a portfolio?

A) the amount of money invested in each asset in the portfolio

B) the degree to which the returns of the assets in the portfolio move together

C) the expected returns on the individual assets in the portfolio

D) the number of assets in the portfolio

A) the amount of money invested in each asset in the portfolio

B) the degree to which the returns of the assets in the portfolio move together

C) the expected returns on the individual assets in the portfolio

D) the number of assets in the portfolio

Explanation / Answer

Ans B) the degree to which the returns of the assets in the portfolio move together

However the answer is the degree to which a risky asset portfolio reduces variance of returns depends on degree of correlation between return of securities.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.