I need questions 1-10 answered please

Homework 10 MPT & CAPM Section One: Conceptual Questions (2 Points Each) 1 Select all the statements that are true about "the best assets"? a) Under MPT, the best assets have the highest return b) Under CAPM, the best assets have the highest return / volatility Under MPT, the best assets have the highest excess return / volatility volatility Under CAPM, the best assets have the highest excess return/ volatility c) d) 2 Volatlity is bad for several reasons, but ONE of them is what? Volatility means big prices swings, up or down Volatility destroys value; the same average return will have a different outcome in the presence of volatility a) c) Volatility is scary Volatility creates value; the same average return will have a different outcome in the presence of volatility 3 CAPM differs from MPT primarily by adding what to the mix of assets a) Risky assets b) Alternative assets d) More cowbell c) Risk-Free assets 4 The Sharpe Ratio is defined as? a) Return /Volatility b) d) Excess Return/Volatility Return of the Risk-Free Rate c) Correlation T/F: Despite the fact that "Return/Volatility" and "Excess Return/Volatility" measure similar things, they can actually contradict one another and sometimes give conflicting results? s a) TRUE b) FALSE T/F: The "optimal portfolio" as defined by "highest return/ volatility" is the best portfolio we can achieve in the absence of a risk-free asset? a) TRUE b) FALSE We can take assets and combine them into portfolios that have a higher return/ volatility ratio than any of the individual assets themselves. This is because.. a) Returns scale linearly but volatility doesn't scale linearly This only occurs when correlation between the two assets is very negative b) Returns do not scale linearly but volatility does scale linearly c) d) More cowbell. T/F: The "optimal portfollo" as defined by "highest excess return/ volatility (i.e. Sharpe Ratio) is the best portfolio we can achieve in the absence of a risk-free asset? a) TRUE b) FALSE T/F: The problem with MPT & CAPM is that the best return we can hope for is the limited by the asset with the highest expected return. In other words, if stocks have an expected return of 10%, the very best we can do on our portfolio is 10%, we could never set up a portfolio with an expected return of greater than 10%, it's mathematically impossible. 9 a) TRUE b) FALSE 10 Alternative assets are what and are sought out why? Select all that apply. a) c) Stocks, Bonds, Cash Assets that have non-strong-correlation to traditional assets. b) d) Anything other than Stocks, Bonds, or Cash Assets that have strong correlation to traditional assets