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1. When investors buy shares in the secondary market , does the company that issued the share receives cash? 2. How would the future value
1. When investors buy shares in the secondary market , does the company that issued the share receives cash?
2. How would the future value of a deposit be affected by
a) a decrease in the interest rate.
b) an increase in the holding period.
Why?
3. Why is the standard deviation of a portfolio usually smaller than standard deviations of the assets that comprise the portfolio? Explain with reason.
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