This topic contains a solution. Click here to go to the answer

Author Question: Which of the following is correct regarding the SML? (Read 15 times)

Hunchojack2019!!

  • Full Member
  • ***
  • Posts: 149

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.



Related Topics

Need homework help now?

Ask unlimited questions for free

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

Khareemom14

  • Full Member
  • ***
  • Posts: 163
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.
Answer Preview
Only 39% of students answer this correctly




Hunchojack2019!!

  • Member
  • Posts: 149
Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

For a complete list of videos, visit our video library