characteristics of the market portfolio, marketing homework help
characteristics of the market portfolio, marketing homework help
1. True or False If two investments offer the same expected return, most investors would prefer the one with higher variance.
2. True or False Portfolios that offer the highest expected return for a given variance or standard deviation are known as efficient portfolios.
3 True or False Investors are mainly concerned with those risks that can be eliminated through diversification.
4. True or False Beta measures the marginal contribution of a stock to the risk of a well-diversified portfolio.
5 True or False According to CAPM, all investments plot along the security market line.
6. True or False Tests of CAPM have confirmed that Capital Asset Pricing Model holds good under all circumstances.
7 True or False Both the CAPM and the APT stress that expected return is not affected by unique, nonsystematic, or firm specific risk.
8. True or False All portfolios on the efficient frontier are efficient portfolios.
9 True or False When we introduce borrowing and lending at the risk-free rate with the market portfolio much of the efficient frontier is now inefficient.
10 True or False The Market portfolio is a risky portfolio that has the average risk for the economy. The beta of this portfolio is one and we typically use a market-index to represent this portfolio in practice.