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1) utility curves specify the tradeoff an investor is willing to make between?

a. high risk and low risk assets

b. efficient portfolio

c. high return and low return assets

d. return and risk

2) asshming that everyone agrees on the location of the efficient forntier within the investment opportunity set, everyone would choose to hold the portfolio on the efficient frontier where the ratio of return per unit of risk is gretest

true or false

3) which statement about portfolio diversification is correct?

a. proper diversification can eliminate systematic risk

b. the risk-reduction benefits of diversification do not occure meaningfully unit at least 50-60 individual securities have been purchased

c. bc diversification reduces a portfolios total risk, it necessarily reduces the portfolios expected return

d. typically, as more securities are added to a portfolio, total risk would be expected to decrease at a decreasing rate

QUESTION 14 Ulty Curves specify the trade anvestors willing to make between high risk and low risk assets officient portfolio high reum and low tumas return and risk QUESTION 15 Assuring that everyone agrees on the location of the efficient from within the investment opportunity to one would choose to hold the the portfolio on the winter where the rate of retum por unit of risk is greatest true false QUESTION 16 Which statement about portfolio diversification is correct? Proper diversification can eliminate systematic The risk reducing benefits of diversification do not occur meaningfully untiatlost 50-60 individual securities have been purchased Because diversification reduces a portfolio's total risk it necessarily reduces the portfolios expected return Typically as more securities are added to a portfolio total risk would be expected to decrease at a decreasing rate

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