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answers pls. no need for explanation. d) a panic on Wall Street No matter how large the number of stocks in the portfolio is, the

answers pls. no need for explanation.image text in transcribed

d) a panic on Wall Street No matter how large the number of stocks in the portfolio is, the risk that cannot be diversified away is the: a) company-specific risk b) unsystematic risk c) systematic risk d) unique risk c) both a and b 8) Which of the following statement is true? a) An efficient portfolio always provides the highest expected rate of return b) An efficient portfolio has less risk than any other asset or portfolio with comparable expected retum and more return than any other asset or portfolio with comparable risk. c) An efficient portfolio always provides the lowest risk for an investor d) The main objective of portfolio construction is to have an efficient portfolio. e) None of the above, As more and more stocks are added to portfolio, the average variance of the diversified portfolio approaches to a) Zero b) Average covariance of the stocks in portfolio c) Lowest variance stock d) Weighted average variance of the stocks in portfolio e) None of the above 1. With a risk-less asset and risky assets, the efficient portfolio opportunity set is a straight line. The statement... (a) is true. b) is false. c) could be true or false, depending on the correlations of the risky assets. d) could be true or false, depending on the standard deviation of the risky asset e) None of the above

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