An investment policy statement's risk objective states that over a $12-$month period, with a probability of

$95\%,$ the client's portfolio must not lose more than $5\%$ of its value. This statement is most likely a$($n$)$:

A total risk objective.

$B$ relative risk objective.

$C$ absolute risk objective.

Investor $y$ has a risk aversion coefficient of $2$ and has the option of investing in one of the following

portfolios:

Which of these portfolios is Investor $Y$ most likely to choose?

A$.$ Portfolio A

B$.$ Portfolio B

C$.$ Portfolio $C$

Use the following tables for questions $16$ to $20$

The proportion of stock DEF's return diversifiable variance is closest to:

A$.0\mathrm{.}4\%$

B$.4\%$

C$.11\%$

The global minimum standard deviation of a portfolio made of stocks ABC and DEF is closest to:

A$.0\mathrm{.}3\%$

B$.6\mathrm{.}3\%$

C$.8\mathrm{.}3\%$