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Unformatted text preview: above are true. 8. As diversification increases, the nonsystematic risk of a portfolio approaches ____________.
D. n * (n-1)
E. None of the above 9. Your opinion is that security C has an expected rate of return of 10.6%. It has a beta of 1.1. The riskfree rate is 4% and the market expected rate of return is 10%. According to the Capital Asset Pricing
Model, you would conclude that this security is _______.
C. fairly priced.
D. Cannot be determ...
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This note was uploaded on 03/17/2013 for the course FINANCE 510 taught by Professor Johngreenhut during the Fall '11 term at Texas A&M University–Commerce.
- Fall '11