Which of the following reduces risk in a portfolio the greatest ?

Related Mcqs:

Which of the following does not help reduce the risk that people face ?

A. increasing the rate of return within their portfolio B. diversifying their portfolio C. All of these answers help reduce risk D. buying insurance...

Idiosyncratic risk is the ?

A. uncertainty associated with the entire economy B. uncertainty associated with specific companies C. risk associated with adverse selection D. risk associated with moral hazard...

Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?

A. lower return and a lower level or risk B. lower return and a higher level of risk C. higher return and a lower level or risk D. higher return and a higher level of risk...

Diversification of portfolio can ?

A. reduce aggregate risk B. eliminate all risk C. increase the standard deviation of the portfolio’s return D. reduce idiosyncratic risk...

The study of a company’s accounting statements and future prospects to determine its value is known as ?

A. information analysis B. risk management C. fundamental analysis D. diversification...