QUESTION 23 What does beta measure? a. Unsystematic Risk. b. Systematic Risk. c. Equity Risk Premium....
QUESTION 23
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What does beta measure?
a. Unsystematic Risk.
b. Systematic Risk.
c. Equity Risk Premium.
d. Total Risk.
QUESTION 24
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Which of the following is an advantage of an indexed equity mutual fund as compared to a managed equity fund?
a. Indexed funds have lower operating costs because of less stock trading.
b. Indexed funds generally have better portfolio managers.
c. Indexed funds engage in more research than managed funds.
d. Index funds generally have less systematic risk compared to actively managed equity funds.
Homework Answers
23)
Systematic risk is the risk arising from changes from market changes. It is same for almost all types of firms in the same industry.
Hence, correct option is “b. Systematic Risk”
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QUESTION 23
What does beta measure?
a. Unsystematic Risk.
b. Systematic Risk.
c. Equity Risk Premium....
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