Use the following three statements to answer this question Risk means the probability that the actual return form an investment is less than the expected return As long as the PAb=-1 an equally weighted portfolio would be risk free (PAb=portfolio A beta) If COVam> COVbm, stock A move closely to the market portfolio (M) than Stock B does a. 1 and 2 p. 1 only c. All incorrect d. All are correct e. 1 and 3

Use the following three statements to answer this question Risk means the probability that the actual return form an investment is less than the expected return As long as the PAb=-1 an equally weighted portfolio would be risk free (PAb=portfolio A beta) If COVam> COVbm, stock A move closely to the market portfolio (M) than Stock B does a. 1 and 2 p. 1 only c. All incorrect d. All are correct e. 1 and 3

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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