Approximate to Four Decimal Places

question 78

Multiple Choice

Approximate to four decimal places.

• A)0.2837
• B)0.2713
• C)0.2683
• D)0.2327
• E)0.5425

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Definitions:

Risk-Free Arbitrage

The practice of profiting from price differences in different markets or forms without risk.

Benchmark Portfolio

Portfolio against which a manager is to be evaluated.

Well-Diversified

Refers to an investment portfolio that contains a wide variety of assets to minimize risk.

SML

The Security Market Line, a graphical representation of the expected return of investments as a function of their risk, as described by the Capital Asset Pricing Model.