Answer to Question #277488 in Financial Math for Tahiat

Question #277488

Let us assume that we belong to a diversified investment is equally capitalised in default free acid and do securities if one of the securities has a systematic risk coefficient of .85 what must be the better for the other stock of the total portfolio risk and market risk is not different


1
Expert's answer
2021-12-09T19:14:08-0500

Such high-risk security should be moved from this diversified investment to decrease the total portfolio risk.


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