单项选择题

A portfolio currently holds Randy Co. and the portfolio manager is thinking of adding either XYZ Co. or Branton Co. to the portfolio. All three stocks offer the same expected return and total risk. The covariance of returns between Randy Co. and XYZ is + 0.5 and the covariance between Randy Co. and Branton Co. is- 0.5. The portfolio’s risk would decrease:（）

A. most if she put half your money in XYZ Co. and half in Branton Co.
B. more if she bought Branton Co.
C. if she bought XYZ Co. but increase if she bought Branton Co.

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单项选择题Both Portfolio X and Portfolio Y are well-diversified. The risk-free rate is 8 percent, and the return for the marker is 16 percent, that is: Portfolio Expected Return Beta X 16% 1.00 Y 12% 0.25 In this situation, which of the following Correlation of Returns about Portfolio X and Portfolio Y is true Portfolio X Portfolio Y（） ①A. overvalued properly valued ②B. properly valued undervalued ③C. undervalued properly valued

A. ①
B. ②
C. ③

单项选择题Which of the following statements about risk is least likely correct（）

A. The security market line plots expected return against systematic risk.
B. The capital market line plots expected return against total risk.
C. The efficient frontier plots expected return against unsystematic risk.