9. The optimal allocation in risky assets under ambiguity or Knightian uncertainty:

A. Should be 50Hc,

B. Sets a lower found on the optimal allocation on risky assets,

C. Represents the worst-case scenario allocation of around 70% of the allocation under risk,

D. B and C.

11. Point(1(ty pumping works best with high volatility and low or negative correlation.

A. True,

B. False.

12. According to Markowitz-Tobin portfolio choice theory, investors optimal portfolio of risky assets is the one that maximizes its excess expected return per unit of total risk.

A. True,

B. False.

14. The compounded annual growth rates of return (CAGR) of the SP500 with an old century mean return of 12Hc and standard deviation of 21Hc and an ETF of treasuries with mean return of 4% are:

A. 8P; 4P

B. 9.80%; 5%

C. 12%; 0%

D. 960%; 4/

16. klarket risk is also referred to as:

A. Systematic risk, diversifiable risk.

B. Systematic risk, non-diversifiable risk.

C. Unique risk, non-diversifiable risk.

D. Unique risk, diversifiable risk.