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Chapter 7 Revision questions 1 Explain the difference between na ve diversification and efficient diversification. 2 Describe what is meant by the market portfolio and
Chapter Revision questions Explain the difference between nave diversification and efficient diversification. Describe what is meant by the market portfolio and how it relates to the idea of a risk premium on risky assets. You have the following six years of data covering share A and the market portfolio: tableYearShare AMarket portfolio,Weighted yearly return
Chapter Revision questions
Explain the difference between nave diversification and efficient diversification.
Describe what is meant by the market portfolio and how it relates to the idea of a risk premium on risky assets.
You have the following six years of data covering share A and the market portfolio:
tableYearShare AMarket portfolio,Weighted yearly return
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