1. If investment return is stated in dollars, to make a decision regarding return adequacy you also need to know:
a. only the scale of investment.
b. only the timing of the return
c. both the scale of investment and the timing of the return
d. neither of the above
2. Risk can be analyzed:
a. only on a stand-alone basis
b. only on a portfolio basis.
c. both on a stand-alone and portfolio basis.
d. neither of the above is correct.
3. The coefficient of variation:
a. is a stand-alone risk measure
b. provides an idea of how far above or below the expected value the actual value is likely to be
c. shows the risk per unit of return
d. a and c are correct
4. ______________ is a measure of market risk which is the extent to which the returns on a stock move with the market.
a. Beta
b. Standard deviation
c. Coefficient of variation
d. Expected return
5. Which of the following statements best describes what would be expected to happen as you randomly add stocks to your portfolio?
a. Adding more stocks to your portfolio reduces the portfolio’s company-specific risk.
b. Adding more stocks to your portfolio reduces the beta of your portfolio.
c. Adding more stocks to your portfolio increases the portfolio’s expected return.
d. All of the statements above are correct.
2007-01-26
11:24:45
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3 answers
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asked by
Anonymous
in
Business & Finance
➔ Investing