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Q1ai) Please choose one option out of the 4. Two individual investors with different levels of risk aversion will have optimal portfolios that are: -above

Q1ai)

Please choose one option out of the 4.

Two individual investors with different levels of risk aversion will have optimal portfolios that are:

-above the capital allocation line.

-on the capital allocation line.

-off the capital allocation line.

-below the capital allocation line.

Question 1aii)

Please choose one option out of the 4.

Based on capital market theory, which of the following is least likely to impact the variance of an investors portfolio?

-Covariances of the asset with the other assets in the portfolio.

-Relative amount invested in the asset.

-Return on the asset.

-Standard deviation of the asset.

Question 1aiii)

Please choose one option out of the 4.

As the number of assets in an equally-weighted portfolio increases, the contribution of each individual assets variance to the volatility of the portfolio:

-can either increase or decrease.

-decreases.

-remains the same.

-increases.

Question 1aiv)

Please choose one option out of the 4.

Which of following individual investors most likely has the largest optimal asset allocation to equities?

-Young with generic skillset.

-Middle-aged with generic skillset.

-Middle-aged with specialised skillset.

-Old with generic skillset.

Question 1av)

Please choose one option out of the 4.

Which of the following is likely to increase the GDP growth trend?

-Stricter immigration policies.

-Decrease in retirement age.

-Closure of child-care facilities.

-Greater investments in computers.

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