paraphrase

User Generated

GbbGnn

Business Finance

Description

It is also important to remember that when a beta is used to measure risk, it is assumed that any diversifiable risk will be reduced through diversification because the beta of any individual security will only tell how much potential risk is added or subtracted by a stock from a diversified portfolio.Thus, there is a difference between the risk level of a stock and a mutual fund of same beta due to the involvement of unsystematic risk. Beta is based on the assumptions that all investors have access to same market information, beta of market is one, and total risk can be divided in unsystematic and systematic risk.


PLEASE USE SEMPLE LANGUAGE

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hi, the answer...


Anonymous
Great study resource, helped me a lot.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags