Use the Figure for the Question(s)below

question 62

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 "A" is/are correct? 1.Portfolio "A" has a positive alpha.
2.Portfolio "A" is overpriced.
3.Portfolio "A" is less risky than the market portfolio.
4.Portfolio "A" should not exist if the market portfolio is efficient.

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

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Definitions:

Pronator Muscles

Muscles located in the forearm that are responsible for pronating the forearm, turning the hand so the palm faces downwards.

Cervical Nerves

A set of eight pairs of nerves that emerge from the cervical segment of the spinal cord, responsible for sensory and motor functions of the neck, shoulder, arm, and hand.

Dura Mater

The outermost, tough layer of the meninges which envelops the brain and spinal cord for protection.

Fibrous Connective Tissue

A type of connective tissue that is composed mainly of fibers, providing support and strength to various body structures.