A
Acadi
Fi
Courses
Knowledge Hub
Community
Practice
Pricing
About
Search
⌘K
Question Bank
/
CFA
/
Level I
/
Portfolio Management
Portfolio Management
Medium
Crestview Pension Fund holds a diversified portfolio of 200 stocks. An analyst adds a 201st stock that has high total risk but very low beta. Adding this stock will most likely:
A
Have little impact on systematic risk while adding minimal diversifiable risk
B
Significantly increase portfolio systematic risk due to the stock's high total risk
C
Eliminate all remaining unsystematic risk in the portfolio
D
Increase portfolio beta proportionally to the stock's total risk
Select an answer to continue
Tags
#systematic-risk
#unsystematic-risk
#diversification
#beta
More Portfolio Management questions
Start full Level I quiz