Question 1) a. Explain the assertion that the relationship between the standard deviation on a portfolio and standard deviations of the assets in the portfolio is not a simple one. (5 marks) b. Briefly discuss the concept of the Security Market Line (SML), and explain why all assets must plot directly on it in a competitive market. (5 marks) c. The dividend debate is inconclusive and still on-going in the corporate world. In your view, briefly discuss some real world factors that may support the payment of high and low dividends. (10 marks) Question 1) a. Explain the assertion that the relationship between the standard deviation on a portfolio and standard deviations of the assets in the portfolio is not a simple one. (5 marks) b. Briefly discuss the concept of the Security Market Line (SML), and explain why all assets must plot directly on it in a competitive market. (5 marks) c. The dividend debate is inconclusive and still on-going in the corporate world. In your view, briefly discuss some real world factors that may support the payment of high and low dividends. (10 marks)