Quiz Ch 08 – T/F Risk Reduction Through Diversification
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: Generally, diversification decreases the overall risk of a stock portfolio.
True or false: Generally, diversification decreases the overall risk of a stock portfolio.
True or false: Risk-averse investors demand greater returns for investments with substantial uncertainty in their returns, a trait exhibited by the majority of investors.
True or false: When investors’ risk aversion diminishes, the slope of the Security Market Line (SML) will rise.