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What Can You Assume About an Investor Whose Diversified Portfolio

Question 27

Multiple Choice

What can you assume about an investor whose diversified portfolio of stocks yielded 25% when the market portfolio yielded 15%?


A) treasury bills are offering a 10% yield
B) the portfolio Beta is greater than 1.0
C) the portfolio Beta equals 1.67
D) the investor's portfolio contains many defensive stocks

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