If an investor has a portfolio that has constant proportions in T-bills and the market portfolio, the portfolio's characteristic line will plot as a line with ___________blank. If the investor can time bull markets, the characteristic line will plot as a line with ___________blank.

Multiple Choice

a negative slope; a positive slope

a positive slope; a negative slope

a constant slope; a negative slope

a constant slope; a positive slope

a negative slope; a constant slope

Question 2

Mutual funds show ____________blank evidence of serial correlation, and hedge funds show ____________blank evidence of serial correlation.

Multiple Choice

almost no; almost no

modest; modest

almost no; substantial

substantial; almost no

substantial; substantial