You hold a portfolio made up of the following stocks: If the market's expected return is 14% and the risk free rate of return is 5% what is the expected return of the portfolio? 17.010% 16.700% 15.935% 14.698% Beginning with an investment in one company's securities, as we add securities of other companies to our portfolio, which type of risk declines? systematic risk market risk non-diversifiable risk unsystematic risk Use the following data: Market risk premium = 10% Risk free rate = 2% Beta of XYZ stock = 1.6 Beta of PDQ stock = 2.4 Investment in XYZ stock $15,000 Investment in PDQ stock = $60,000 You have no assets other than your investments in XYZ and PDQ stock. What is the expected return of your portfolio based on (i)CAPM and (ii)weighting individual stock method? i.24.4%; ii. 24 4% i. 0%; ii. 36.4% i. 15.5%; ii. 0% i. 24.4%; ii. 0% All of the following are criticisms of the payback period criterion EXCEPT time value of money is not accounted for. cash flows occurring after the payback are ignored it deals with accounting profits as opposed to cash flows. none of the above; they are all criticisms of the payback period criteria