Use the Figure for the Question(s)below

question 1

Multiple Choice

Use the figure for the question(s) below.Consider the following graph of the security market line:
-Portfolio "C":

• A)is less risky than the market portfolio.
• B)has a relatively lower expected return than predicted.
• C)is underpriced.
• D)has a negative alpha.

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Definitions:

Richmond Hill

A town in South-Central Ontario, Canada, part of the Greater Toronto Area.

Standard Deviation

A gauge of the extent to which a collection of numbers varies or is spread out.

Mean Weight

The average weight of a set of objects or individuals, calculated by summing their weights and dividing by the number of objects or individuals.

Standard Deviation

It quantifies the amount of variation or dispersion of a set of data values from its mean, serving as an indicator of the data's spread.