Use the Figure for the Question(s)below

question 71

Multiple Choice

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

• A)is less risky than the market portfolio.
• B)is overpriced.
• C)has a positive alpha.
• D)falls above the SML.

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Definitions:

New World

A term historically used to refer to the Americas, indicating their discovery by European explorers during the Age of Exploration.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or that affects a specific location and is not simply a direct result of physical injury.

Discipline

Training to ensure proper behavior, often through regulations and orders, or the controlled behavior resulting from such training.