Expected Portfolio Returns $[11]$ If a portfolio has a positive investment in every

asset, can the expected return on the portfolio be greater than that on every asset in

the portfolio? Can it be less than that on every asset in the portfolio? If you answer

yes to one or both of these questions, give an example to support your answer.

Diversification $[$LO$2]$ True or false: The most important characteristic in

determining the expected return of a well$-$diversified portfolio is the variance of

the individual assets in the portfolio. Explain.

Portfolio Risk $[$LO$2]$ If a portfolio has a positive investment in every asset, can

the standard deviation on the portfolio be less than that on every asset in the portfolio?

What about the portfolio beta?