Question
Read the following 5 statements and decide which of them are TRUE: Select one or more: a. An investment in an efficient portfolio violates the
Read the following 5 statements and decide which of them are TRUE: Select one or more: a. An investment in an efficient portfolio violates the mean-variance principle. b. The capital market line shows total risk of an investment while the security market line shows the systematic risk of an investment. c. When mixing risky securities with a risk free investment, the portfolio risk only consists of the proportionate risk of the risky securities. d. Homogeneous expectations mean that investors use different estimates concerning future investments and returns. e. In CAPM every investor should invest in the market portfolio independent of his or her risk preference.
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