Question
1. Dominant Portfolios Determine which one of these three portfolios dominates another. Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has
1. Dominant Portfolios Determine which one of these three portfolios dominates another. Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has an expected return of 14 percent and risk of 19 percent. The expected return and risk of portfolio Yellow are 15 percent and 18 percent, and for the Purple portfolio are 16 percent and 21 percent.
A. Portfolio Purple dominates Portfolio Blue
B. Portfolio Blue dominates Portfolio Yellow
C. Portfolio Yellow dominates Portfolio Blue
D. Portfolio Purple dominates Portfolio Yellow
2. This is a measurement of the co-movement between two variables that ranges between -1 and +1.
A. coefficient of variation
B. standard deviation
C. correlation
D. total risk
3. Which of the following is NOT a capital market instrument?
A. U.S. Treasury bills
B. Corporate stocks and bonds
C. U.S. Treasury notes and bonds
D. U.S. government agency bonds
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started