Risk of a portfolio that consists of stocks


Which one of the following will decrease the risk of a portfolio that consists of stocks, Treasury bills, and gold?

A) Decreasing the number of securities in the portfolio

B) Selling stocks and replacing them with Treasury bills

C) Selling a .90 beta stock and buying a 1.1 beta stock

D) Selling the gold and buying more diversified stocks

E) Selling the large-company stocks and buying small-company stocks

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Business Management: Risk of a portfolio that consists of stocks
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