Portfolio Management Q91
0. Which of the following statements is most likely to be correct?
- A
Non-systematic risk The sum of an asset’s systematic variance and its nonsystematic variance of returns is equal to the asset’s total variance.
- B
The sum of an asset’s systematic standard deviation and its nonsystematic standard deviation of returns is equal to the asset’s total risk
- C
The sum of an asset’s systematic returns and its non systematic returns is equal to the asset’s beta.
- Option : A
- Explanation : The sum of an asset’s systematic variance and its nonsystematic variance of returns is equal to the asset’s total variance
