Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
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1
Question 4
2
Q
Two assets, Q & R, each have an expected return of 11.75%. Asset Q's standard deviation is 13% and Asset R's standard deviaion is 13.2%. A rational investor will choose:
A. Either asset R or asset Q.
B. Asset R.
C. Asset Q.
Question 5
Answers:
F1
Thursday, June 30, 2022 2:15:10 AM EDT
An investor whose portfolio is not diversified is subject to:
A. systematic risk.
B. non-systematic risk.
c. both systematic risk and non-systematic risk.
@
2
Answers:
A-
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5
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Transcribed Image Text:Esc
1
Question 4
2
Q
Two assets, Q & R, each have an expected return of 11.75%. Asset Q's standard deviation is 13% and Asset R's standard deviaion is 13.2%. A rational investor will choose:
A. Either asset R or asset Q.
B. Asset R.
C. Asset Q.
Question 5
Answers:
F1
Thursday, June 30, 2022 2:15:10 AM EDT
An investor whose portfolio is not diversified is subject to:
A. systematic risk.
B. non-systematic risk.
c. both systematic risk and non-systematic risk.
@
2
Answers:
A-
W
#
3
F3
E
F4
$
4
R
с
F5
%
5
E
T
F6
6
F7
Y
&
7
F8
U
*
8
19
F9
L
9
F10
K
*-
O
O
3+
F12
P
PrtSc
t
2
11
0 a
6
Ba
![✓
Question 4
FI
Two assets, Q & R, each have an expected return of 11.75%. Asset Q's standard deviation is 13% and Asset R's standard deviaion is 13.2%. A rational investor will choose:
A. Either asset R or asset Q.
B. Asset R.
C. Asset Q.
Question 5
Answers:
2
An investor whose portfolio is not diversified is subject to:
Answers: A. systematic risk.
Thursday, June 30, 2022 2:15:10 AM EDT
W
4+
*3
B. non-systematic risk.
C. both systematic risk and non-systematic risk.
E
$
4
F4
R
с
F5
%
5
T
F6
6
H
Y
F7
&
7
F8
U
* 00
8
F9
81
L
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9
F10
-
F11
0
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F12
P
PrtSc
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#
0 c
Del
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Transcribed Image Text:✓
Question 4
FI
Two assets, Q & R, each have an expected return of 11.75%. Asset Q's standard deviation is 13% and Asset R's standard deviaion is 13.2%. A rational investor will choose:
A. Either asset R or asset Q.
B. Asset R.
C. Asset Q.
Question 5
Answers:
2
An investor whose portfolio is not diversified is subject to:
Answers: A. systematic risk.
Thursday, June 30, 2022 2:15:10 AM EDT
W
4+
*3
B. non-systematic risk.
C. both systematic risk and non-systematic risk.
E
$
4
F4
R
с
F5
%
5
T
F6
6
H
Y
F7
&
7
F8
U
* 00
8
F9
81
L
(
9
F10
-
F11
0
*+
F12
P
PrtSc
[
#
0 c
Del
Ba
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