According to Modern Portfolio Theory,the _______ the Degree of Systematic

question 52

Multiple Choice

According to modern portfolio theory,the _______ the degree of systematic risk,the _______ should be the expected return.

• A) smaller; greater.
• B) greater; greater.
• C) smaller; smaller.
• D) greater; smaller.

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Definitions:

Adjusted

Modified or changed in order to correct or improve the financials, often used in the context of financial statements to present a particular item in a way that reflects its true economic impact.

Financial Statements

Formal records that outline the financial activities and position of a business, individual, or other entity.

Accounts

Records that summarize transactions related to a specific asset, liability, equity, revenue, or expense.

Prepayment

The payment of a bill, debt, or obligation before its due date, often securing a discount or avoiding penalties.