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Stephanie Juarez
on Dec 09, 2024

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Adding some Treasury bills to a risky portfolio helps reduce unsystematic risk in a portfolio.

Unsystematic Risk

The risk of price changes in a company's stock due to factors specific to the company, as opposed to market-wide factors.

Treasury Bills

Short-term U.S. government debt obligations maturing in one year or less, considered a safe and liquid investment.

Risky Portfolio

A collection of investments that has a higher standard deviation, but potentially higher returns.

  • Evaluate how diversifying an investment portfolio influences risk reduction strategies.
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Manvir RandhawaDec 13, 2024
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