QUESTION 7 Firm Portfolio Weight Volatility Correlation with Market Portfolio Taggart Transcontinental 0.25 14% 0.7 Wyatt Oil 0.35 18% 0.6 Rearden Metal 0.40 15% 0.5 The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4%. The beta for Taggart Transcontinental is closest to: O 0.80 O 1.00 O 0.75 O 1.10 QUESTION 8 Which of the following statements is FALSE? It is possible to invest a negative amount in a stock or security (called a short position). A short sale is a transaction in which you buy a stock that you do not own and then agree to sell that stock back in the future. The efficient portfolios are those portfolios offering the lowest possible level of volatility for a given level of expected return. A positive investment in a security can be referred to as a long position in the security