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AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 47 Topic 5 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 47 Topic 5 Discussion

GLO_CWM_LVL_1 Exam Topic 5 Question 47 Discussion:
Question #: 47
Topic #: 5

"Consider the following information for three stocks, Stock A, Stock B, and Stock C. The returns on each of the three stocks are positively correlated, but they are not perfectly correlated.

GLO_CWM_LVL_1 Question 47

Portfolio X has half of its funds invested in Stock A and half invested in Stock B. Portfolio Y has invested its funds equally in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium.

Which of the following statements is/are correct?

GLO_CWM_LVL_1 Question 47


A.

II and III


B.

Only II


C.

I,II and III


D.

Only IV


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