contestada

Which of the following is a characteristic of a well diversified portfolio?
a. very little systematic risk.
b. zero systematic risk.
c. very little unsystematic risk.
d. none of the above.

Respuesta :

Answer:

c. very little unsystematic risk.

Explanation:

The first option is wrong because a diversified portfolio can only lockout unsystematic risk which is due to a particular business sector and not the risk emanating from the whole market which is systematic in nature.

The second option is also wrong because systematic risk cannot be diversified away.

ayfat23

Statement that explains characteristic of a well diversified portfolio is C : very little unsystematic risk.

  • In marketing, A well diversified portfolio serves as one that has variety of securities which in turn means that the weight of any security is small.

  • It posses very little unsystematic risk.

  • The risk that is associated with well-diversified portfolio can be considered to be a close approximates of systematic risk that is associated with the overall market.

Therefore, option C is correct.

Learn more at:

https://brainly.com/question/15236602

Otras preguntas