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ASAP! 1. Which of the following is an advantage of investing in ETFs? a) They provide limited diversification b) They have high fees compared to

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1. Which of the following is an advantage of investing in ETFs? a) They provide limited diversification b) They have high fees compared to mutual funds c) They are traded on stock exchanges d) They are not subject to market fluctuations 2. Which of the following statements is true about the Capital Market Line (CML)? A) The CML represents the set of portfolios that offer the highest return for a given level of risk. B) The CML is a straight line that intersects the y-axis at the risk-free rate and tangent to the efficient frontier at M, the market portfolio representation. C) The CML shows the relationship between expected return and market risk. D) The CML is only applicable to portfolios that are fully invested in risky assets. 18. Which of the following is a limitation of technical analysis? A) It relies heavily on subjective interpretations of chart patterns and technical indicators. B) It is unable to account for macroeconomic factors that may affect the price of a security. C) it is only useful for short-term trading strategies. D) it requires a deep understanding of a company's financial statements. 19. Which of the following is a key principle of fundamental analysis? A) The future price of a security is determined by its past price movements. B) Market prices are always efficient and reflect all avallable information. C) A company's true value can be determined by analying its financial statements and economic conditions. D) The risk of a security is solely determined by its beta coefficient. 20. According to the Capital Asset Pricing Model (CAPM), which of the following is the primary determinant of the expected return on a security? A) The market risk premium B) The beta coefficient of the security C) The correlation between the security and the market D) The size of the company issuing the security

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