Which of the following statements related to risk is (are) true: (i) Beta measures risk that cannot be diversified. (ii) As more shares are included in a portfolio the total risk of that portfolio goes down. (iii) Investors are normally risk averse and, therefore, they demand a risk premium.

Which of the following statements related to risk is (are) true: (i) Beta measures risk that cannot be diversified. (ii) As more shares are included in a portfolio the total risk of that portfolio goes down. (iii) Investors are normally risk averse and, therefore, they demand a risk premium.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13QTD

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Question

Which of the following statements related to risk is (are) true:

(i) Beta measures risk that cannot be diversified.

(ii) As more shares are included in a portfolio the total risk of that portfolio goes down.

(iii) Investors are normally risk averse and, therefore, they demand a risk premium.

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