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The S&P 500 Index and the S&P/TSX Composite Index are two of the most commonly used benchmark indices for the North American equity markets. Both

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The S&P 500 Index and the S&P/TSX Composite Index are two of the most commonly used benchmark indices for the North American equity markets. Both the S&P 500 and the S&P/TSX Composite are market value-weighted indices. This means that each company's performance is reflected in the index, weighted by the ratio of the company's value to the total value of all the companies. As an investor and based on your understanding of risk, which of the following statements is true? You should invest in a stock if the expected rate of return from the stock is greater than the expected rate of return on an asset with a similar risk. You should invest in a stock if the expected rate of return on an asset with similar risk is higher than the expected rate of return from the stock. You invest $100,000 in 40 stocks, 20 bonds, and a Government of Canada T-bill. What kind of risk will you primarily be exposed to? O Stand-alone risk Portfolio risk

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