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Chapter Overview
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AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

  • Use data on the past performance of stocks and bonds to characterize the risk and return features of these investments.
  • Determine the expected return and risk of portfolios that are constructed by combining risky assets with risk-free investments in Treasury bills.
  • Evaluate the performance of a passive strategy.





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Essentials of Investments, 7eOnline Learning Center

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