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I only b i and ii only c iii only d ii and iii only

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Unformatted text preview: Gamma and Epsilon is +0.8.Determine the standard deviation of returns for this investor's portfolio. 3 a. 73.8% b. 6.71% c. 3.00% d. 8.59% ANS: D Solution: sp=[(0.75)2(8%)2 +(0.25)2(12%)2 +2(0.75)(0.25)(0.8)(8%)(12%)].5 = 8.59% B. Efficient Portfolios (Slides 34 ­35) 9. The efficient portfolios: I) provide highest returns for a given level of risk II) provide the least risk for a given level of returns III) have no risk at all a. I only b. I and II only c. III only d. II and III only ANS: B C. Introduce Borrowing and Lending, Capital Market Line (Slides 36 ­43) 10. With the ability to borrow and lend at the ris...
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