答案和详解如下：

1.Which one of the following alternatives correctly outlines the importance of the portfolio perspective?

A)   Market participants should analyze the risk-return trade-off of a portfolio as a whole, not the risk-return trade-off of the individual investments in a portfolio.

B)   Market participants should focus on the systematic risk of the components of a portfolio not the unsystematic risk of the components of a portfolio.

C)   Market participants should attempt to eliminate the systematic risk associated with each security by forming portfolios that will diversify away this risk.

D)   Market participants should attempt to eliminate the unsystematic risk associated with each security by forming portfolios that will diversify away this risk.

The correct answer was A)

The key underlying principle of the portfolio perspective is that market participants should analyze the risk-return trade-off of the portfolio as a whole, not the risk-return trade-off of the individual investments in the portfolio.

1.Which one of the following alternatives correctly outlines the importance of the portfolio perspective?

A)   Market participants should analyze the risk-return trade-off of a portfolio as a whole, not the risk-return trade-off of the individual investments in a portfolio.

B)   Market participants should focus on the systematic risk of the components of a portfolio not the unsystematic risk of the components of a portfolio.

C)   Market participants should attempt to eliminate the systematic risk associated with each security by forming portfolios that will diversify away this risk.

D)   Market participants should attempt to eliminate the unsystematic risk associated with each security by forming portfolios that will diversify away this risk.