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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