Please answer q4 -6 on this sheet thanks

FIN42040 Tutorial 5 - Microsoft Word Mailings Review View A 5-18 21 Subtitle Emphasis Subtle Em Title 1 Normal Heading 1 * No Space Heading 2 Paragraph Styles 4. MCQ- Using the Sharpe single-index model with a random portfolio of U.S. common stocks, as one increases the number of stocks in the portfolio, the total risk of the portfolio will a. approach zero b. approach the portfolio's systematic risk c. approach the portfolio's non-systematic risk d. not be affected 5. MCQ- The CAPM implies that a investors may invest in assets with expected retums lower than the riskless interest rate b. no investor should invest in the risk-free asset c. the only relevant measure of risk is standard deviation d. the expected retum on an efficient portfolio may be lower than the riskless interest rate 6. MCQ - The beta of an efficient portfolio a. must be 1 since an efficient portfolio is perfectly positively correlated with the market portfolio b. is proportional to 1, depending on the proportion invested in the market portfolio c. is equivalent to the portfolio's standard deviation, since standard deviation is the measure of risk for an efficient portfolio d. is always less than 1 7. MCQ - Assume that the risk-free rate is 9% and that the market portfolio has an expected return of 17% and a standard deviation of 20%. Under equilibrium conditions as described by the CAPM, what would be the expected retum for a portfolio having no diversifiable risk and a standard deviation of 15%? 179 b. 99 o 0