This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: A) optimal risky portfolio B) riskfree rate C) mix of riskfree asset and optimal risky asset D) choice of risk free asset 5. The ________ is equal to the square root of the systematic variance divided by the total variance. A) covariance B) correlation coefficient C) standard deviation D) rewardtovariability ratio 6. The _________ could be used in an index model to represent common or systematic risk factors. A) firm size B) industry C) S&P500 index D) capital allocation line 7. The variance of a portfolio of risky securities is __________. A) the sum of the securities' covariances B) the sum of the securities' variances C) the weighted sum of the securities' covariances D) the weighted sum of the securities' variances 8. Beta is a measure of __________. A) firm specific risk B) diversifiable risk C) market risk D) unique risk...
View
Full
Document
This note was uploaded on 05/10/2008 for the course FIN 367 taught by Professor Han during the Spring '08 term at University of Texas at Austin.
 Spring '08
 han

Click to edit the document details