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D. capital allocation line
4. You are considering adding a new security to your portfolio. In order to decide
whether you should add the security you need to know the security's _______.
I. expected return
II. standard deviation
III. correlation with your portfolio
A. I only
B. I and II only
C. I and III only
D. I, II and III
5. Rational risk-averse investors will always prefer (complete) portfolios
A. located on the efficient frontier to those located on the capital allocation line
B. located on the capital allocation line to those located on the efficient frontier
C. at the minimum variance point on the efficient frontier
D. that are risk-free to all other asset choices...
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This document was uploaded on 02/18/2014.
- Spring '13