Tiêu đề 3.2 Portfolio Risk And Return Part II.pdf ✅

3.02 Portfolio Risk And Return Part II Question 1 An investor's optimal portfolio is most likely to be determined by the: A. portfolio with the highest return. B. current borrowing and lending rates. C. indifference curve with the highest utility. Question 2 Portfolios on the capital market line are most likely constructed using a combination of: A. a global market index and US Treasury bills. B. the optimal risky portfolio and the risk-free asset. C. the global minimum variance portfolio and US Treasury bills. Question 3 If a portfolio is fully diversified, it most likely eliminates which type of risk(s)? A. Systematic and nonsystematic risk B. Nonsystematic risk but not systematic risk C. Systematic risk but not nonsystematic risk Question 4 The security market line shows an asset's expected return based on the asset's: A. total risk. B. systematic risk only. C. nonsystematic risk only. Question 5 The market model is most likely used for determining the: A. expected return of a security. B. asset allocation of a portfolio. C. nonsystematic risk of an asset. Question 6 The capital market line (CML) represents portfolios that consist of a stock market index and US Treasury bills, whereas the capital allocation line (CAL) is best described as representing portfolios that consist of: A. the optimal risky portfolio and the risk-free asset. B. the global minimum variance portfolio and the risk-free asset. C. the market portfolio and short-term government securities. Question 7 Which of the following portfolio performance measures is a meaningful standalone metric?