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
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.
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2
Answers:
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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
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