ch3 elearn quiz - Question 1 (3.12 points) Save Which is...

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Question 1 (3.12 points) Save
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Which is the best measure of risk for an asset held in isolation? Which is the best measure for an asset held in a diversified portfolio? Variance; correlation coefficient. Standard deviation; correlation coefficient. Beta; variance. Coefficient of variation; beta. Beta; beta. Question 2 (3.12 points) Save Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of the following statements must be true about these securities? (Assume market equilibrium.) When held in isolation, Stock A has greater risk than Stock B. Stock B would be a more desirable addition to a portfolio than Stock A. Stock A would be a more desirable addition to a portfolio than Stock B. The expected return on Stock A will be greater than that on Stock B. The expected return on Stock B will be greater than that on Stock A. Question 3 (3.12 points) Save You have developed data which give (1) the average annual returns of the market for the past five years and (2) similar information on Stocks A
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This note was uploaded on 10/03/2010 for the course FINANCE 08FB40447 taught by Professor Raymond during the Spring '10 term at University of Manchester.

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ch3 elearn quiz - Question 1 (3.12 points) Save Which is...

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