Q.93. According to the options and the answer given, I think so the question is asking “least likely” but it’s not mentioned so.
- Please confirm if I’m thinking it right or not.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Hello,
First of all the question is complete there no need to add the AT LEAST word after it
secondly here are the explanation for all the options :-
A – it would be wrong if we say such a portfolio must be well-diversified; even some single-security portfolios might (accidentally) plot on the SML.
B- it would be wrong if we say such a portfolio has only systematic risk; the SML doesn’t measure nonsystematic risk.
Hence C is the correct answer -It’s certainly true that such a portfolio may be concentrated in only a few stocks.