Question: QUESTION 15 An underpriced security will plot A. on the Security Market Line. either above or below the Security Market Line depending on its covariance

 QUESTION 15 An underpriced security will plot A. on the Security

QUESTION 15 An underpriced security will plot A. on the Security Market Line. either above or below the Security Market Line depending on its covariance with the market. OB. C. below the Security Market Line. above the Security Market Line. OD E. either above or below the Security Market Line depending on its standard deviation. QUESTION 16 Consider a risky portfolio, A, with an expected rate of return of 0.16 and a standard deviation of 0.16, that lies on a given indifference curve. Which one of the following portfolios might lie on the same indifference curve? A. E(r) = 0.10: Standard deviation = 0.10 B.E(r) = 0.15; Standard deviation = 0.20 C. E(T) = 0.10: Standard deviation = 0.20 D.E() = 0.16: Standard deviation = 0.10 E. E(T) = 0.20: Standard deviation = 0.15

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