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Which of the following is/are true? I. All else equal, adding undervalued security to an investment portfolio increases portfolio risk. II. All else equal, and
Which of the following is/are true? I. All else equal, adding undervalued security to an investment portfolio increases portfolio risk. II. All else equal, and over time, a larger number of investors should decrease the probability and number of under or overvalued securities. III. All else equal, a higher required rate of return increases the estimated value of a security.
Question 1 options:
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1) | I only |
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2) | II only |
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3) | I and III |
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4) | II and III |
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