CIMA Exam CIMAPRA19-F03-1 Topic 5 Question 27 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 27
Topic #: 5

Which THREE of the following statements are correct?

AA portfolio can be diversified by increasing the number of securities in different industries held in the portfolio.

BSystematic risk can be eliminated in a diversified portfolio.

CThe beta of a company's shares reflects systematic risk.

DA beta of 1 indicates that the investment is risk free.

EThe security market line (SML) shows the relationship between systematic risk and return.

Show Suggested Answer

Suggested Answer: A, C, E

by Teri at May 04, 2022, 09:52 AM

Limited Time Offer

25%

Off

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!