help on 8 & 9

D. None of the above 8. Which of the following is correct? 1. According to CAPM, risk premium on the market portfolio isproportional to its variance, and to the risk aversion of the average investor II. Security market line (SML) shows the retur demanded by investors as a function of the beta of their investment III. Single index model assumes alpha is zero. IV. Arbitrage pricing theory (APT) is a theory of risk return relationships derived from no arbitrage considerations in large capital markets. A. I,II, &IV only B. I, II, III, &IV C. 1&ll only D. II & IV only I 9. Suppose you observed that high-level managers make superior returns on investments in their company's stock. This would be a violation of I. weak-form market efficiency li semi-strong form market efficiency Wistrong-form market efficiency iv. No violation of market efficiency A. &It only B. II & II only C. lll only D. None of the above 10. "Perfectly negative correlation between two asset helps to achieve significa duction MacBook Pro Du do 17 DD 54 000 F 8 FB FS F3 F2 A & $ 4 % 5 7 8 9 0 6 2 3 Y 0 U E W E T R n G F HJ C