Use the Figure for the Question(s)below

question 24

Multiple Choice

Use the figure for the question(s) below.Consider the following graph of the security market line:
-Which of the following statements regarding portfolio "C" is/are correct? 1.Portfolio "C" has a negative alpha.
2.Portfolio "C" is overpriced.
3.Portfolio "C" is less risky than the market portfolio.
4.Portfolio "C" should not exist if the market portfolio is efficient.

• A)1 and 3
• B)2 and 4
• C)1,3,and 4
• D)3 only

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Definitions:

Sphygm/o

A prefix related to the pulse, used in terms denoting something measured by the pulse.

Arterial Blood Pressure

The pressure within arteries, which is vital for circulating blood throughout the body.

Sphygmomanometer

A sphygmomanometer is a device used to measure blood pressure, typically involving a cuff that is placed around the arm.

Electrocardiograph

A medical device used to record the electrical activity of the heart over a period of time.