Hence option b is the answer 12 C Rate of change index method is used to

# Hence option b is the answer 12 c rate of change

This preview shows page 9 - 11 out of 16 pages. 27.B Leveraged Funds are used in order to increase the size of the value of the portfolio and benefit the shareholders by gains exceeding the cost of the borrowed funds. Hence option (b) is false. Other statements are true. Thus option (b) is the answer. 28.C Variance of the portfolio of two stocks is calculated as σ12w12+ σ22w22+ 2σ1σ2w1w2, whereσiis variance of the stockwiis weight of the stockis the correlation coefficient of two stocks,In the given case, 324 ×0.72+ 178 ×0.32+ 2 ×0.7 ×0.3 = 205174.78 + 100.86= 205= 0.3012ρ12ρ12324178ρ12ρ12ρ29.C The longer it takes for prices to break through a pattern, the greater is the significance of the penetration. Thus option (c) is false. Other statements are true. Hence option (c) is the answer.  #### You've reached the end of your free preview.

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• Fall '14
• UNKNOWN
• Dividend yield
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