Use the table for the question(s) below.
Consider the following expected returns,volatilities,and correlations: ![Use the table for the question(s) below. Consider the following expected returns,volatilities,and correlations: -Which of the following equations is INCORRECT? A) E[R<sub>xp</sub>] = r<sub>f</sub> + x(E[R<sub>p</sub>] - r<sub>f</sub>) B) E[R<sub>xp</sub>] = (1 - x) r<sub>f</sub> + xE[R<sub>p</sub>] C) Sharpe ratio = D) SD( R<sub>xp</sub>) = xSD(R<sub>p</sub>)](https://d2lvgg3v3hfg70.cloudfront.net/TB1626/11ea7cce_3d23_ba2b_928c_9b09e3003e97_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00_TB1626_00.jpg)
-Which of the following equations is INCORRECT?
Definitions:
Risk-taking Individual
is a person who is willing to undertake actions that involve uncertainty or risk in order to achieve potentially significant results.
Entrepreneur
An entrepreneur is a person (or group of people) who creates the new enterprise, opportunity or business venture.
Self-employed Service Business
A self-employed service business is operated by an individual who provides services, rather than goods, directly to customers on a freelance or contract basis.
New Product
An item that is introduced in the market for the first time or a significantly improved or modified version of an existing product.
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