An investor’s risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true?
A. Each stock in the portfolio has its own beta.
B. Each stock in the portfolio will have a beta greater than one.
C. An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing).
D. Selling any stock in this portfolio will lower the beta of the portfolio.
A. Each stock in the portfolio has its own beta.
B. Each stock in the portfolio will have a beta greater than one.
C. An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing).
D. Selling any stock in this portfolio will lower the beta of the portfolio.
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