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Author Question: The beta of a portfolio is the weighted average of the betas of all of the assets in the portfolio. ... (Read 217 times)

Metfan725

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on: Jul 10, 2018
The beta of a portfolio is the weighted average of the betas of all of the assets in the portfolio.
 
  Indicate whether the statement is true or false.

Question 2

Which of the following assumptions about the Security Market Line is NOT true?
 
  A) There is a basic reward for waiting: the risk-free rate.
  B) The greater the risk, the greater the expected return.
  C) There is an inconsistent trade-off between risk and reward at all levels of risk.
  D) All of the above statements are true.


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joanwhite

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE

Answer to Question 2

Answer: C
Explanation: C) There is a CONSISTENT trade-off between risk and reward at all levels of risk.


Metfan725

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

EAN94

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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