You can choose one or many answers for question 7.

) of a portfolio's return can be 7. According to the index model: Ri = BiRM + di + e, the risk component(s) ( increasingly eliminated through the diversification with more securities. A Bii B dii Ce ii E Ri. DRM 8. In order to improve the risk-return balance of a passive index M (RM, OM) by adding a security A (Ry, QA, BA, OEA) to build up an active portfolio C, then the information ratio of A and its weight in C will respectively be ). A aglomi B agloen sec aglomi BAOM RM/OM RM/OM BA/0%. agloa, E agloed Room Daglegi RM/O