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:

Company

An entity formed for the purpose of conducting business activities, which can range in size from sole proprietorships to large multinational corporations.

Brand Associations

The feelings, beliefs, and knowledge that consumers have about a brand, which can influence their purchasing decisions.

Decision

The act of making a choice among available alternatives.

Corporate Brand

Refers to the overall identity of a corporation, encompassing its values, reputation, and visual appearance, which aims to differentiate it in the marketplace.