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Author Question: Which of the following is correct regarding the SML? (Read 14 times)

Hunchojack2019!!

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Question 1

Which of the following is correct regarding combining two negatively correlated assets into a portfolio?

it will reduce portfolio risk


it will not affect portfolio risk


it will increase portfolio standard deviation


it will keep portfolio returns unchanged



Question 2

Which of the following is correct regarding the SML?

The greater the marginal investor’s risk aversion, the flatter the SML.


The lower the marginal investor’s risk aversion, the more positive the SML slope. 


The lower the marginal investor’s risk aversion, the steeper the SML.


The lower the marginal investor’s risk aversion, the flatter the SML.



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Marked as best answer by Hunchojack2019!! on Aug 7, 2023

Khareemom14

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Hunchojack2019!!

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


6ana001

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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