QUESTION 11 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 14 Which of the following statements is correct? All complete portfolios on the capital allocation line has the same Sharpe ratio Short selling the risk-free asset is equivalent to lending money at the risk free rate In a portfolio, asset weights must sum up to 0 the capital allocation line is downward sloping