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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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