Which of the following investment strategies offers the best diversification benefit to a U.S. investor?

a. Invest in stocks and bonds in both the US market and other countries.

b. Invest in stocks listed on NASDAQ only.

c. Invest in stocks in S&P 500 only.

d. Invest in stocks listed on NYSE only.

Which of the following investment will beleastcorrelated with the returns of the S&P 500 index?

a. A Exchange-traded fund (ETF) that tracks the performance of S&P 500 index.

b. A bond fund in China that tracks the performance of Chinese government bonds.

c. A Exchange-traded fund (ETF) that tracks the performance of Dow Jones Industrial 30 index.

d. A mutual fund that tracks the performance of NYSE composite index.

Security Market Line is the line that shows the relation between ____________.

a. Expected return and total risk, measured by standard deviation

b. Expected return and systematic risk, measured by beta.

c. Expected return and systematic risk, measured by standard deviation

d. Expected return and total risk, measured by beta