Which one of the following funds should be viewed as less attractive when held in a large, well-diversified portfolio? Fund E[R] Standard Deviation Beta ABC 10% 35% 1.2 XYZ 10% 30% 1.6 Group of answer choices ABC because its beta is lower. XYZ because its beta is higher. ABC because its standard deviation is higher. XYZ because its standard deviation is lower.

Which one of the following funds should be viewed as less attractive when held in a large, well-diversified portfolio? Fund E[R] Standard Deviation Beta ABC 10% 35% 1.2 XYZ 10% 30% 1.6 Group of answer choices ABC because its beta is lower. XYZ because its beta is higher. ABC because its standard deviation is higher. XYZ because its standard deviation is lower.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter5: Probability: An Introduction To Modeling Uncertainty

Section: Chapter Questions

Problem 30P: Suppose that the return for a particular large-cap stock fund is normally distributed with a mean of...

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