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Please solve this question fast, need within 20 minutes. No need to explain, just right option for these 5 questions Q1) Mutiple Choice Questions a)

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Please solve this question fast, need within 20 minutes. No need to explain, just right option for these 5 questions

image text in transcribed
Q1) Mutiple Choice Questions a) The variability of a well-diversified portfolio mostly reflects the contributions to risk from the standard deviations of the stocks within that portfolio 1) True ii) False b) The beta of a well-diversified portfolio is equal to the value weighted average beta of the securities included in the portfolio. 1) True ii) False c) Managers, shareholders, and the firm's debtholders have identical information about the value of the firm True False d) One would expect a stock with a beta of 1.25 to increase in returns: i) 25% more than the market in up markets ii) 25% more than the market in down markets iii) 125% more than the market in up markets iv) 125% more than the market in down markets. e) If a stock were overpriced, it would plot: above the security market line below the security market line iii) on the security market line iv) none of the above Marks (1 x 5= 5)

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