Use the figure for the question(s) below.Consider the following graph of the security market line: 
-Which of the following statements regarding portfolio "B" is/are correct? 1.Portfolio "B" has a positive alpha.
2.Portfolio "B" is overpriced.
3.Portfolio "B" is less risky than the market portfolio.
4.Portfolio "B" should not exist if the market portfolio is efficient.
Definitions:
Perceives
The process of becoming aware of something through the senses and the way in which information is interpreted and understood.
Examination
A formal test of a person's knowledge or proficiency in a subject or skill.
Bobo Doll Experiment
A social psychology experiment conducted by Albert Bandura, demonstrating that children can learn aggressive behaviors from observing adults.
Token Reinforcement
A system of behavior modification based on the systematic reinforcement of target behavior, wherein tokens are given as rewards which can be exchanged for desired items or privileges.
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