Use the following three statements to answer this question: 1. Risk means the probability that the actual return from an investment is less than the expected retum. 2. As long as PAB-1, an equally weighted portfolio would be risk-free 3. If COVAM CoveM. stock A moves more closely to the market portfolio (M) than stock B does. O a all are correct Ob 1 and 3 Oc 1 and 2 Od. all are incorrect 1 only
Use the following three statements to answer this question: 1. Risk means the probability that the actual return from an investment is less than the expected retum. 2. As long as PAB-1, an equally weighted portfolio would be risk-free 3. If COVAM CoveM. stock A moves more closely to the market portfolio (M) than stock B does. O a all are correct Ob 1 and 3 Oc 1 and 2 Od. all are incorrect 1 only
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
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![Use the following three statements to answer this question:
1. Risk means the probability that the actual return from an investment is less than the
expected retum.
2. As long as PAB -1, an equally weighted portfolio would be risk-free
3. If CovAM >CoveM. stock A moves more closely to the market portfolio (M) than stock
B does.
all are correct
1 and 3
Oc.
1 and 2
Od. all are incorrect
Oe.
1 only](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83ba0947-75a4-4952-a075-368ef4d1f7a6%2F8b4f8319-39e5-473c-ad0a-678aa6ffaef8%2Fj5j44jo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following three statements to answer this question:
1. Risk means the probability that the actual return from an investment is less than the
expected retum.
2. As long as PAB -1, an equally weighted portfolio would be risk-free
3. If CovAM >CoveM. stock A moves more closely to the market portfolio (M) than stock
B does.
all are correct
1 and 3
Oc.
1 and 2
Od. all are incorrect
Oe.
1 only
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