Which Statement Is Correct

question 25

Multiple Choice

Which statement is correct?

• A)A portfolio that contains at least 30 diverse individual securities will have a beta of 1.0.
• B)Any portfolio that is correctly valued will have a beta of 1.0.
• C)A portfolio that has a beta of 1.12 will lie to the left of the market portfolio on a security market line graph.
• D)A risk-free security plots at the origin on a security market line graph.
• E)An underpriced security will plot above the security market line.

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Definitions:

RBCs

Red Blood Cells responsible for carrying oxygen from the lungs to the body tissues and carbon dioxide from the tissues to the lungs.

T-lymphocytes

A type of white blood cell crucial for the immune response, playing a key role in the body's defense against pathogens.

AIDS

Acquired Immunodeficiency Syndrome, a chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV) damaging the immune system.

T-cell Count

A measurement of the number of T-cells (a type of white blood cell crucial for immune function) in the blood, often used to assess immune system health or in the context of diseases like HIV/AIDS.