An investor's risky portfolio is made up of individual stocks. - 6901

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

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

 C.  Each stock in the portfolio will have a beta greater than one. 

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

 
Solution Description

An investor's risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true?