Assume you own a portfolio of diverse securities each of which is correctly priced. Given this, the reward-to-risk ratio: of each security must equal the slope of the security market line. for the portfolio must equal 1.0. for the portfolio must be less than the market risk premium.
Assume you own a portfolio of diverse securities each of which is correctly priced. Given this, the reward-to-risk ratio: of each security must equal the slope of the security market line. for the portfolio must equal 1.0. for the portfolio must be less than the market risk premium.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 21P
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Assume you own a portfolio of diverse securities each of which is correctly priced. Given this, the reward-to-risk ratio:
of each security must equal the slope of the security market line.
for the portfolio must equal 1.0.
for the portfolio must be less than the market risk premium.
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