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NEW QUESTION: 1
Section A (1 Mark)
From the following data calculate the expected rate of return of a portfolio in which A and B has weights equally:
A. 0
B. 1
C. 2
D. 3
Answer: B
NEW QUESTION: 2
An administrator is scheduling a software patch in an enterprise environment. What is a consideration for the administrator regarding potential impact to users?
A. Update file size
B. Disruption of workflows
C. Network Bandwidth
D. Server Redundancy
Answer: B
NEW QUESTION: 3
Which of the following statements about portfolio theory is false:
A. Total risk equals systematic risk plus unsystematic risk.
B. If a security plots above the SML it is undervalued.
C. The risk measure associated with the CML is standard deviation (total risk).
D. If a security plots above the theoretical CML it is undervalued.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
No security can plot above the theoretical CML. All risky securities must be contained within or lie upon the efficient frontier and the CML is tangent to the efficient frontier.
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