This quiz works best with JavaScript enabled. Home > Economics > Finance > Risk > Risk And Return – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Risk And Return Quiz 5 (5 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How many diverse securities are required to eliminate the majority of the diversifiable risk from a portfolio? A) 10. B) 5. C) 40. D) 100. Show Answer Correct Answer: A) 10. 2. The portfolio which consist of perfectly positive correlated assets have no effect of A) Positivity. B) Negativity. C) Correlation. D) Diversification. Show Answer Correct Answer: D) Diversification. 3. What information do you need to compute the volatility of a portfolio? A) Portfolio weights, portfolio return. B) Portfolio weights, volatility of the securities, correlation coefficient of securities return. C) Value of investment, total value of portfolio. D) None of above. Show Answer Correct Answer: B) Portfolio weights, volatility of the securities, correlation coefficient of securities return. 4. Which type of risk does diversification help to manage? A) Specific. B) Market. C) Both a and b. D) Neither a nor b. Show Answer Correct Answer: A) Specific. 5. The following measurements are used to describe the risk in a portfolio: A) Standard deviation. B) Beta. C) Probability distribution. D) Correlation. Show Answer Correct Answer: B) Beta. ← PreviousRelated QuizzesFinance QuizzesEconomics QuizzesRisk And Return Quiz 1Risk And Return Quiz 2Risk And Return Quiz 3Risk And Return Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books