Please answer all if not dont take.

Question 1: Which of the following statements about CML and SML is FALSE?

a. Securities that plot above the SML are undervalued.

b. Securities that plot on the SML have the same Sharpe Ratio

c. Investors expect to be compensated for systematic risk.

d. The Sharpe Ratio of the market portfolio equals the CML slope.

e. None of the above

Question 2:

Which of the following statements about correlation is accurate?

a. If the correlation coefficient is 0, a zero-variance portfolio can be constructed.

b. Diversification reduces risk when correlation only when correlation is negative.

c. The lower the correlation coefficient, the greater the potential benefits from diversification.

d. Covariance between returns ranges from -1 to +1.

e. None the above statements is accurate

question 3:

Which of the following statements about risk-averse investors are true? A risk-averse investor _________. [I] seeks out the investment with minimum risk, while return is not a major concern. [II] will take additional risk if sufficiently compensated for the risk. [III] will only invest in bonds.

a. I

b. II only

C. III only

D. I and II only

E. None of the statements are true