An investor's risky portfolio is made up of individual stocks. - 515

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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 will have a beta greater than one.

B. Each stock in the portfolio has its own beta.

C. Selling any stock in this portfolio will lower the beta of the portfolio.

D. An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing). 

Solution Description

An investor's risky portfolio is made up of individual stocks. Which of the following statements about t