A security with only diversifiable risk has an expected return that exceeds the riskfree rate of return. Begin your answer with Consistent or Inconsistent followed by your explanation.
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Q: Given the information in the following table, what is the expected return of the security?
A: Expected Return: It refers to the amount of gain/loss anticipated by the investor on an investment.…
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- 9) The measure of risk in a Markowitz efficient frontier is A) specific risk. B) standard deviation of returns. C) reinvestment risk. D) beta. Provide explanation for the accurate answer.Please explain why this statement is (False). If a security's realized return is negative, it must have been true that the expected return was greater than the required return.Explain the difference between a linear risk and a nonlinear risk.
- Which one of the following is the formula that explains the relationship between the expected returnon a security and the level of that security's systematic risk?Determine how the appropriate yield to be offered on a security is affected by a higher risk-free rate. Explain the logic of this relationship. . Determine how the appropriate yield to be offered on a security is affected by a higher default risk premium. Explain the logic of this relationship.an efficient portolio ...... 1) minimise return for a given level of risk 2) minimise risk for a given level of return 3) minimize both risk and return 4) all the options choose the correct statement