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Risk and Return, please give correct answers for these two questions Question 6 0.0/3.0 points (graded) Suppose you make an investment of $500, of which
Risk and Return, please give correct answers for these two questions
Question 6 0.0/3.0 points (graded) Suppose you make an investment of $500, of which $400 is borrowed. If the value of the investment declines by 10%, your loss will be: 10% 12.5% 40% 50% Question 8 0.0/3.0 points (graded) Which of the following statements are true (mark all that apply)? Diversification over a large number of assets completely eliminates all risk. Diversification works only when asset returns are uncorrelated. A stock with high standard deviation may contribute less to portfolio risk than a stock with lower standard deviation. Diversification reduces the expected return on the portfolio because it decreases riskStep by Step Solution
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