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Most of the benefit in risk reduction is realized when the number of securities reaches Blank______.
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- H2. What are the different types of expected return and related risk, for individual assets and for portfolios as a whole. Explain carefully what each type represents and give examples in each case. What type of expected returns does the CAPM model capture? What type of expected return and risk you are exposed to if you have the FTSE 100 INDEX only in the portfolio?Define the real risk-free rate (r*). What security canbe used as an estimate of r*? What is the nominalrisk-free rate (rRF)? What securities can be used asestimates of rRF?Which of the following risks are reduced as more securities are added to the underlying portfolio? More than one answer may be correct. Multiple select question. Asset-specific risk Systematic risk Unique risk Market risk Unsystematic risk
- Moving to another question will save this response. Quèstion 7 What is the other name for fim-specific risk? O Systematic risk O Market risk O Micro-cap risk O Undiversifiable risk O Diversifiable risk A Moving to another question will save this response. Mac 20 F3 O00 DO0 F4 esc F1 F2 #3 2$ 2 4 W E RWhat effect do antidilutive securities have on EPS when exercised? (NIE 8) They can reduce or increase EPS, depending on the nature of the security. They reduce EPS.None. They don't effect EPS. They increase EPS.Why is the default F risk in a CMBS offering given more attention?
- The so-called ``flight to quality'', which happens during a financial crisis, causes the risk premium between risky and risk-free securities to be Question 6 options: eliminated. reduced. unchanged (there is no effect). increased.Q7. In a market that is efficient, investors are only compensated for bearing Group of answer choices 1. diversifiable risk 2. unique risk 3. total risk 4. non-diversifiable riskWhen a firm invests in money market instruments, it is taking _______ and should expect __________. Question 6 options: 1) high risk, high returns 2) high risk, low returns 3) low risk, low returns 4) low risk, high returns
- 4.What is the expected return, Standard denation and Coeknicient of vanation of an equally werghted port folLo OF technology, T-bills and inernatin et Funds? tiDW does your Dort folio risk and return compane to that Of the Spp500 index?Please step by step solutionsAccording to the capital asset pricing model (CAPM), fairly priced securities should have __________. Select one: a. A fair return based on the level of systematic risk. b. A beta of 1. c. A return equal to the market return. d. A fair return based on the level of unsystematic risk.