The efficient frontier of risky assets contains all

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Question 111point11. Question 11The efficient frontier of risky assets contains all portfolios that yield:The highest expected return for a given level of volatility (i.e., standard deviation)The minimum amount of volatility (i.e., standard deviation)Positive expected returns
Question 121point12. Question 12The historical equity market premium in the U.S. (the return of the U.S. stock market minus the rate of U.S. Treasury Bills) has averaged roughly ________ per year over the last 80+ years.
Module 2The tangency portfolio is defined as the portfolio of risky assets that has the:
Question 21point2. Question 2The Capital Asset Pricing Model (CAPM) has the prediction that stock returns should be related to the:
Question 31point3. Question 3Suppose a stock is estimated to have a beta (β) of 0.5. This stock has the same risk as a portfolio that is:150% invested in the overall stock market and -50% in the risk-free asset (i.e., borrowing to invest even more in the stock market)100% invested in the overall stock market50% invested in the risk-free asset and 50% invested in the overall stock market100% invested in the risk-free asset
Question 41point
4. Question 4Randomly adding more stocks to a portfolio will eventually reduce the variability of the portfolio performance to near zero as long as the returns of the stocks are:

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