Reference no: EM132993479

Problem 1) The relationship between risk and return can best be described as______.

a) inverse

b) direct

c) logarithmic

d) convoluted

Problem 2) You hold a portfolio composed of 50?% security A and 50?% security B. If A has an expected return of 14?% and B has an expected return of 18?%, what is the expected return from your? portfolio?

a) 18%

b) 15%

c) 16%

d) 14%

Problem 3) A _________ return usually incurs? __________ risk.

(Select the best choice? below.)

a) decent; very high

b) higher; higher

c) lower; higher

d) higher; lower