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QUESTION 1 0.3125 points Mary's coefficient of risk aversion A is 1. This means that For each unit of volatility, Mary requires an expected return
QUESTION 1 0.3125 points Mary's coefficient of risk aversion A is 1. This means that For each unit of volatility, Mary requires an expected return equal to 100%. For each unit of variance, Mary requires an expected return equal to 100%. For each unit of volatility, Mary requires a risk premium equal to 100%. For each unit of variance, Mary requires a risk premium return equal to 100%. QUESTION 6 0.3125 points Save An Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset that has a rate of return of 5% and a risky portfolio with an expected return of 8%. If you want your complete portfolio to have an expected rate of return equal to 8%, you must: Invest $1000 in the risk free asset Invest $500 in the risk free asset Invest $1000 in the risky portfolio Invest more than $1000 in the risky portfolio QUESTION 10 0.3125 poin Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset that has a rate of return of 5% and a risky portfolio with an expected return of 8%. If you want your complete portfolio to have an expected rate of return greater than 8%, you must: invest less than $1000 in the risky portfolio invest more than $1000 in the risky portfolio Invest nothing in the risky portfolio invest $500 in the risky portfolio QUESTION 11 0.3125 poin The returns of stock A for each of the past 4 years are 0.1, -0.05, 0.12 and -0.03. What is the expected annual return of stock A? 0.06 0.12 0.05 0.035
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