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  3. the _________________ the risk of an investment, t

The _________________ the risk of an investment, the ________________ the return of an investment ...

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Finance

The _________________ the risk of an investment, the ________________ the return of an investment

greater;lower

lower,greater

greater, greater

lower, lower.

  1. Portfolio return is based on the expected average return of the individual securities in the portfolio. However, the risk of a portfolio is not the average risk of the individual secuties. This is because of:

    asset allocation

    correlation

    variance

    none of the answers are correct

  1. Since ROE will increase with added debt, it is corect to say that for all firms, ROE will always exceed ROA.

    True

    False

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