Question: QUESTION SIX A) What is the difference between a market order and a limit order? Name one (1) advantage and one (1) disadvantage of each

QUESTION SIX

A) What is the difference between a market order and a limit order? Name one (1) advantage and one (1) disadvantage of each type of order. (8 marks)

B) Describe the relationship between correlation and diversification. (6 marks)

C) Using the diagram below describe the possible reason for the change from the original Security Market Line (SML) to the new SML. (6 marks)

[TOTAL: 20 MARKS]

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