Question
1.Passive Investment strategy is inexpensive and simple but it requires security analysis. a. True b. False 2.CAL (Capital Allocation Line) connects the risk-free rate and
1.Passive Investment strategy is inexpensive and simple but it requires security analysis.
a. True
b. False
2.CAL (Capital Allocation Line) connects the risk-free rate and a risky portfolio while CML (Capital Market Line) links the minimum-variance portfolio and the market portfolio
a. True
b. False
3. The efficient frontier represents a set of portfolios that minimize expected return for a given level of risk.
a. True
b. False
4.The security market line (SML) is valid for individual assets only while the security characteristic line (SCL) is valid for well-diversified portfolios only.
a. True
b. False
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