Which statement is true?

• A. During the period from 1975 to 2020, the NASDAQ outperformed the S&P 500, and the S&P 500 outperformed the Dow 30.
• B. All stocks and portfolios of stocks are on the frontier of efficient investments.
• C. If the risk-free rate increases but the expected return to the market portfolio does not change, then the expected return to all stocks, regardless of their betas, will decrease.
• D. A well-diversified portfolio would have many stocks in it with high correlations between and among them.

• C. If the risk-free rate increases but the expected return to the market portfolio does not change, then the expected return to all stocks, regardless of their betas, will decrease. Which statement is correct?
• A. Primary securities market transactions are subject to regulations under the Securities Exchange Act of 1934.
• B. The members of the board of directors of a corporation are chosen by the executive management.
• C. Non-systematic risk is reduced through portfolio diversification.
• D. The beta of a stock is a number between zero and one. The Federal Reserve Board regulates, and the District Banks supervise banks.
• A. True
• B. False In a normal agency relationship, the principal is responsible for monitoring and enforcing the contractual compliance of the agent.

  True

  False