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Need help with getting the right answer 2. [ True / False ] The graph below shows the indifference curves for investor A and B.

Need help with getting the right answer

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2. [ True / False ] The graph below shows the indifference curves for investor A and B. The graph reveals that the investor A would choose P over Q while the investor B would choose Q over P. Investor A Investor B E(r) Q P 3. [ True / False ] When all individual asset returns follow normal distributions, the returns of any portfolio of these individual assets would also follow a normal distribution. 4. [ True / False ] In the CAPM, the beta of a risky asset represents the sensitivity of the return of the risky asset to the market portfolio return. 5. [ True / False ] In the Markowitz Portfolio Selection Model, all the portfolios optimally chosen by investors would have the same Sharpe ratio. 6. [ True / False ] Under the CAPM, the beta of the market portfolio is zero. 7. [ True / False ] Any asset without the default risk can be a risk-free asset

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