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If the Market Portfolio Is Expected to Offer Returns of 16%,then

Question 98

Multiple Choice

If the market portfolio is expected to offer returns of 16%,then what can be said about a portfolio expected to return 13%?


A) It plots below the security market line.
B) Part of the portfolio is invested in Treasury bills.
C) The portfolio is not diversified.
D) The portfolio's beta is less than 1.0.

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