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The Expected Return on the Market Is 11

Question 99

Multiple Choice

The expected return on the market is 11.5 percent with a standard deviation of 13 percent and the risk-free rate is 4 percent.Which of the following portfolios are undervalued?
The expected return on the market is 11.5 percent with a standard deviation of 13 percent and the risk-free rate is 4 percent.Which of the following portfolios are undervalued? A) 1 and 2 only B) 1 and 4 only C) 2 and 3 only D) 3 and 4 only


A) 1 and 2 only
B) 1 and 4 only
C) 2 and 3 only
D) 3 and 4 only

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