pls ans all if not DO NOT take

1.

1. Which of the following statements about correlation is accurate?

   		If the correlation coefficient is 0, a zero-variance portfolio can be constructed.
   		Diversification does not reduce risk when correlation is positive.
   		The lower the correlation coefficient, the higher the expected return of a portfolio.
   		Covariance ranges from -1 to +1.
   		A zero variance portfolio can be formed by combing two assets with correlation of -1.

2. Which of the following statements about risk-averse investors are true? A risk-averse investor _________. [I] seeks out the investment with minimum risk, while return is not a major concern. [II] will choose a portfolio below the efficient frontier [III] prefers higher expected return if the risks are the same.

   		I only.
   		II only.
   		III only.
   		I and II only.
   		II and III only.

3. Which of the following portfolios will NOT be on the efficient frontier? The risk free rate is 5%.

   Portfolio	Expected returns	Expected standard deviation
   A	7%	12%
   B	8%	15%
   C	11%	25%
   D	10%	28%

   		A
   		B
   		C
   		D
   		Not enough information

4. X is a portfolio on the Capital Market Line (CML). Y is a portfolio on the efficient frontier. Which of the following CANNOT be true?

   		X has a lower expected return than Y
   		X has a higher standard deviation than Y
   		X has a lower standard deviation than Y
   		X has a higher Sharpe Ratio than Y
   		None of the above