Active portfolio risk is defined as  Group of answer choices the return difference between the portfolio and the benchmark the standard deviation of the return of the benchmark portfolio the standard deviation of the return difference between the portfolio and the benchmark the standard deviation of the return of the actively-managed portfolio none of the above.

A well-diversified portfolio is most likely to have: Both systematic and unsystematic risk Only unsystematic risk Only systematic risk.

When a portfolio is diversified, what type of risk is reduced?   Multiple Choice   unsystematic risk   systematic risk

Unsystematic risk: is compensated for by the risk premium. is measured by standard deviation. is related to the overall economy. can be effectively eliminated by portfolio diversification. is measured by beta.

Which of the following portfolios achieves the highest Sharpe ratio? (check all that applies)       Any portfolio created with a combination of mvp and risk free rate         Any portfolio created with a combination of tangency portfolio and risk free rate         Any portfolio created with a combination of mvp and tangency portfolio

Question No. 1:                                                                                        Explain the following Financial Terminology and then determined the relationship between its. portfolio efficient Beta Coefficient frontier efficient Diversification Diversifiable Risk Systematic Risk

ich of the following will not reduce risk in a portfolio?   Select one: a.   Selecting two securities that are perfectly positively correlated.   b.   Selecting two securities that are positively correlated.   c.   Selecting two securities that are perfectly negatively correlated.   d.   Selecting two securities that are negatively correlated.

According to modern portfolio theory, pair-wise covariance is more important to total portfolio risk than individual security variance. True or False

How does standard deviation and variance affect portfolio risk, more so than expected return?

Which one of the following is a property of a pure arbitrage portfolio?a. Negative investment.b. Zero return.c. Positive systematic risk.d. Zero total risk.