4. An asset manager collects the following data: Assets Security A Security B Security C Market Portfolio Risk-Free E(RI) 10.0% 11.1% 12.2% 12.0% 3.0% Std 15% 18% 22% 18% 0% PIM 1.0 0.9 0.8 1.0 0% Where E(R) is the expected return on Security i. Based solely on this data, choose the following: A. B. C. Undervalued Securities A Securities C Security B Properly valued Security B Security B Security C Overvalued Security C Security A Security A 5. Which of the following institutional investors will most likely have the highest liquidity needs? A. B. C. A foundation. A life insurance company. A property and casualty insurance company. 6. The slope of the capital market line can be determined by dividing the standard deviation of the market portfolio returns into the difference between the returns of the: A. B. C. Risky portfolio and the risk-free asset. Market portfolio and the risky portfolio. Market portfolio and the risk-free asset