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Kyle Puts a Greater Proportion of His Portfolio into Government

Question 3

Multiple Choice

Kyle puts a greater proportion of his portfolio into government bonds.Kyle's action


A) increases both risk and the average rate of return.
B) decreases both risk and the average rate of return.
C) increases risk,but decreases the average rate of return.
D) decreases risk,but increases the average rate of return.

Correct Answer:

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