chap 13 quiz

chap 13 quiz - Ques tion 1 The correlation between stocks A...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Ques tion 1 0 out of 10 points The correlation between stocks A and B is the:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 2 10 out of 10 points According to the CAPM: Selected Answer: Question 3 10 out of 10 points The systematic risk of the market is measured by: Selected Answer: Question 4 0 out of 10 points If the correlation between two stocks is +1, then a portfolio combining these two stocks will have a variance that is: Selected Answer: Question 6 10 out of 10 points The combination of the efficient set of portfolios with a riskless lending and borrowing rate results in: Selected Answer:
Background image of page 2
Question 6 10 out of 10 points Question 7 0 out of 10 points Which one of the following statements is correct concerning the standard deviation of a portfolio? Selected Answer: Question 8 10 out of 10 points According to the Capital Asset Pricing Model: Selected Answer: The excess return earned by an asset that has a beta of 1.0 over that earned by a risk-free asset is referred to as the: Selected Answer: market risk premium. If investors possess homogeneous expectations over all assets in the market portfolio, when riskless lending and borrowing is allowed, the market portfolio is defined to: Selected Answer: All of the above.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Diversification can effectively reduce risk. Once a portfolio is diversified, the type of risk remaining is: Selected Answer: risk related to the market portfolio. . The portfolio expected return considers which of the following factors?
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/10/2010 for the course FIN 600 taught by Professor Hansen during the Spring '10 term at Ramapo.

Page1 / 9

chap 13 quiz - Ques tion 1 The correlation between stocks A...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online