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please nd answer now 16 The historical data shows that the following class of securities had the least risk (measured by the standard deviation of

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16 The historical data shows that the following class of securities had the least risk (measured by the standard deviation of returns): a.Commonstocksb.smallcompanystocksc.long-termcorporatebonds 17. The technique (process) by which investing across numerous stocks in investor is able to reduce risk under a broad set of circumstances by a. hedging b. diversification 18. Given the following information, calculate the required rate of return for the firm A. [Use CAPM] RF=3%;E(RM)=13% \& A=0.8 (use CAPM) a. 11% b. 13% c. 15% d. 18% e. none of the given answers 19. The 'beta' of the market portfolio (market index) is: a. zero b. 0.5 c. 1.0 d. 2.0 e. None of the given answers 20. The 'beta' of a risk-free asset (T-Bills) is: a. zero b. 0.5 c. 1.0 d. 2.0 e. None of the given answers 21: Given that the beta () for Stock A and B are A=0.9 and B=1.3; Calculate the beta () of a portfolio formed by investing 50% of the funds in Stock A and 50% in stock B a. 1.0 b. 1.1 c. 1.2 d. 1,4 e. none of the given answers

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