From questions 6 and 7, which portfolio has better risk-reward?
A: Passive portfolio
B: Active portfolio
A: Passive portfolio
B: Active portfolio
举一反三
- What is slope of passive portfolio return and risk line if you draw risk on x-axis and return on y-axis?<br/>______
- When a portfolio consists of only a risky asset and a riskless asset, increasing the fraction of the overall portfolio invested in the risky asset will ______. A: increase the expected return on the portfolio B: increase the standard deviation of the portfolio C: not change the risk-reward ratio D: Neither A, B nor C is true E: A, B and C are all true
- Portfolio is a effective approach to reduce investment risk
- If the daily, 90% confidence level, VaR of a portfolio is estimated to be $4,000, the risk manager would expect that in one out of:（ ） A: 10 days, the portfolio value will decline by $4,000 or less B: 90 days, the portfolio value will decline by $4,000 or less C: 10 days, the portfolio value will decline by $4,000 or more
- Which of the following risks can be diversified through portfolio investment? _____. A: Interest rate risk B: Inflation risk C: Market risk D: Default risk