Q6. (6 points) If Investor A has a lower risk aversion coefficient than Investor B, on...

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Q6. (6 points) If Investor A has a lower risk aversion coefficient than Investor B, on the capital allocation line, will Investor B's optimal portfolio most likely have a higher expected return? A Yes B No, because Investor B has a higher risk tolerance C No, because Investor B has a lower risk tolerance Q7. (6 points) A firm in an industry that is very sensitive to the business cycle will likely have a stock beta: A. greater than 1.0 B. equal to 1.0 C. less than 1.0 but greater than 0.0 D. equal to or less than 0.0 E. There is no relationship between beta and sensitivity to the business cycle. Q6. (6 points) If Investor A has a lower risk aversion coefficient than Investor B, on the capital allocation line, will Investor B's optimal portfolio most likely have a higher expected return? A Yes B No, because Investor B has a higher risk tolerance C No, because Investor B has a lower risk tolerance Q7. (6 points) A firm in an industry that is very sensitive to the business cycle will likely have a stock beta: A. greater than 1.0 B. equal to 1.0 C. less than 1.0 but greater than 0.0 D. equal to or less than 0.0 E. There is no relationship between beta and sensitivity to the business cycle. Q6. (6 points) If Investor A has a lower risk aversion coefficient than Investor B, on the capital allocation line, will Investor B's optimal portfolio most likely have a higher expected return? A Yes B No, because Investor B has a higher risk tolerance C No, because Investor B has a lower risk tolerance Q7. (6 points) A firm in an industry that is very sensitive to the business cycle will likely have a stock beta: A. greater than 1.0 B. equal to 1.0 C. less than 1.0 but greater than 0.0 D. equal to or less than 0.0 E. There is no relationship between beta and sensitivity to the business cycle. Q6. (6 points) If Investor A has a lower risk aversion coefficient than Investor B, on the capital allocation line, will Investor B's optimal portfolio most likely have a higher expected return? A Yes B No, because Investor B has a higher risk tolerance C No, because Investor B has a lower risk tolerance Q7. (6 points) A firm in an industry that is very sensitive to the business cycle will likely have a stock beta: A. greater than 1.0 B. equal to 1.0 C. less than 1.0 but greater than 0.0 D. equal to or less than 0.0 E. There is no relationship between beta and sensitivity to the business cycle.

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