A portfolio consists of three stocks （A, B, and C）, which have a 30%,20%,50% weighting, and the three stocks with an expected return of 20%, 10%, and 30% respectively. The expected returns of the port

According to "modem portfolio theory", we should ______.

A．buy one single kind of stocks

B．buy stocks whose prices fluctuates at the same pace

C．never sell our stocks

D．sell stocks whose prices go relatively too high in our portfolio

A、the expected return of the portfolio is less than the weighted average expected return of the stocks.

B、the expected return of the portfolio is greater than the weighted average expected return of the stocks.

C、the expected return of the portfolio is equal to the weighted average expected return of the stocks.

D、there is no relationship between the expected return of the portfolio and the expected return of the stocks.

CAPM is an equilibrium theory based on the theory of portfolio selection. The following figure depicts the relation between risk and return in equilibrium, where M represents the market portfolio constructed by risky stocks. Denote that the risk-free return is rf and the expected return and risk of M are E(rM) and σM, respectively. Which of the following statements is correct？

A、The portfolio hold by Investor 2 is more efficient than the portfolio hold by Investor 1

B、Both investor 1 and investor 2 would invest the same amount of money into risky stocks

C、Investor 2 puts more money into risky stocks

D、Investor 2 isn’t a risk-seeking investor

A．return

B．portfolio

C．patent

D．budget

He had a cottage which consists _____ three rooms, a bathroom and kitchen.

A:of

B:with

C:in

D:by

A sparkler consists of three different compounds.

A．Y

B．N

C．NG

Consider a U.S. portfolio manager who holds a portfolio of French stocks currently worth €10 million. In order to hedge against a potential depreciation of the euro, the portfolio manager proposes to sell December futures contracts on the euro that currently trade at $1/€ and expire in two months. The spot exchange rate is currently $1.1/€. A month later, the value of the French portfolio is €10,050,000 and the spot exchange rate is $1.05/€, while the futures exchange rate is $0.95/€. a. Evaluate the effectiveness of the hedge by comparing the fully hedged portfolio return with the unhedged portfolio return. b. Calculate the return on the portfolio, assuming a 35 percent hedge ratio.