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Questions 11-14 please and thanks 11. You invest all of your money in 1-year T-bills. Which of the following statements is (are) correct? I. Your
Questions 11-14 please and thanks
11. You invest all of your money in 1-year T-bills. Which of the following statements is (are) correct? I. Your nominal return on the T-bills is riskless. II. Your real return on the T-bills is riskless. III. Your real return is uncertain A. I only B. I and III only C. II only D. I, II, and III E. None of the above 12. Risk that can be eliminated through diversification is called A. Unique risk B. Firm-specific risk C. Diversifiable risk D. All of the above E. None of the above 13. Which of the following statistics cannot be negative? A. covariance B. variance C. E(r) D. correlation coefficient E. All of the above can be negative 14. The correlation coefficient between two assets equals A. their covariance divided by the product of their variances B. the product of their variances divided by their covariance C. the sum of their expected returns divided by their covariance D. their covariance divided by the product of their standard deviations E. None of the aboveStep by Step Solution
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