Question

Feedback b. C61. IncorrectNot the expected return. You are looking to see what happens to risk and return as you alter the proportion of X which you hold, therefore, you need to select and alter the weight of X held (C60) The correct answer is: =C60. What happens to risk and return as you alter the proportion of X which you hold? 1) Risk and return increase 2) Risk and return decrease 3) Risk increases and return decreases 4) Risk decreases and return increases

Answer 1

Final Answer:

You are looking to see what happens to risk and return as you alter the proportion of X which you hold, therefore, The correct answer is 1) Risk and return increase.

Step-by-step explanation:

Incorrect Feedback (b. C61): The initial feedback suggests that the answer is incorrect and not aligned with the expected return. The user is advised to focus on altering the weight of X held, specifically referring to C60.

Clarification of Correct Answer (C60): The correct option is identified as "=C60," which addresses the objective of analyzing what happens to risk and return when altering the proportion of X held. This implies that the correct action involves adjusting the weight of X.

True Relationship (Risk and Return Increase): The final answer, "Risk and return increase," signifies the relationship between altering the proportion of X held and the subsequent impact on risk and return. In this scenario, as the proportion of X increases, both risk and return experience an upward trend.