Homework Answers
Solution :-
The Correct Answer is (C) that is A Beta > 1 implies the asset has more systematic risk than the overall market.
Option ( a and b ) incorrect because Beta is a measure of systematic risk not a unsystematic risk.
and As high as the beta , As high the systematic risk ,
Beta is a Ratio of a stock return and market return.
Beta is a measure of volatity .
So the correct option is ( C )
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Which of the following is statements is TRUE? Beta is a measure of unsystematic risk )...
Which of the following statements about risk measures is correct? a. Beta is a measure of...
Which of the following statements about risk measures is correct? a. Beta is a measure of systematic risk, whereas standard deviation is the measure of total risk. b. Beta is a measure of total risk, whereas standard deviation is the measure of unsystematic risk. c. Beta is a measure of total risk, whereas standard deviation is the measure of systematic risk. d. Beta is a measure of total risk, whereas Standard deviation is the measure of systematic risk. e. Beta...
Standard deviation measures _____ risk while beta measures _____ risk. systematic; unsystematic unsystematic; systematic total; unsystematic...
Standard deviation measures _____ risk while beta measures _____ risk. systematic; unsystematic unsystematic; systematic total; unsystematic total; systematic asset-specific; market
QUESTION 23 What does beta measure? a. Unsystematic Risk. b. Systematic Risk. c. Equity Risk Premium....
QUESTION 23 What does beta measure? a. Unsystematic Risk. b. Systematic Risk. c. Equity Risk Premium. d. Total Risk. QUESTION 24 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...
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
6. What is the risk measure associated with the capital market line (CML)? Beta risk. Unsystematic...
6. What is the risk measure associated with the capital market line (CML)? Beta risk. Unsystematic risk. Total risk.
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17. Which of the following statements is true about "Smart Beta" strategies A. They are an...
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Which of the following statements is true? A. A stock with a beta less than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0. B. A stock with a beta greater than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0. C. A stock with a beta less than zero has no exposure to systematic risk. D. A stock with a beta less than 1.0 has higher nondiversifiable risk than a stock...
The scroll down options are 1. systematic/unsystematic risk 2. systematic/unsystematic risk 3. standard deviation/risk aversion 4....
The scroll down options are
1. systematic/unsystematic risk
2. systematic/unsystematic risk
3. standard deviation/risk aversion
4. correlation coefficient/diversification
Risk is the potential for an investment to generate more than one return. A security that will produce only one known return is referred to as a risk- free asset, as there is no potential for deviation from the known expected outcome. Investments that have the chance of producing more than one possible outcome are called risky assets. Risk, or potential variability...
12. Decompose the Total Return on the systematic and unsystematic portions of the following asset: Expected...
12. Decompose the Total Return on the systematic and unsystematic portions of the following asset: Expected Return market = 4% Risk Free - 1% Expected Return asset A-7% Actual Return Market = 2% Beta asset A .89 Actual Return asset A 5 % UNE (RM) = RM-E(R) UNE (RA) = RA-E(R) Systematic Portion of UNE Return = (Ry - ERBA Unsystematic Portion of UNE Return = (RA-E(R)) - (RM-E(R))BA Interpret your results
Which of the following statements about risk measures is correct? a. Beta is a measure of systematic risk, whereas standard deviation is the measure of total risk. b. Beta is a measure of total risk, whereas standard deviation is the measure of unsystematic risk. c. Beta is a measure of total risk, whereas standard deviation is the measure of systematic risk. d. Beta is a measure of total risk, whereas Standard deviation is the measure of systematic risk. e. Beta...
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
17. Which of the following statements is true about "Smart Beta" strategies A. They are an important component of modern portfolio theory (MPT) B. Investors who use smart beta strategics do who use smart beta strategies do not worry about correlation because portfolios at combine several smart beta strategies are already well diversified. C. They outperform whether the market goes up or down. D. They are a form of top-down investing. E. None of the above statements is true. 18....
The scroll down options are
1. systematic/unsystematic risk
2. systematic/unsystematic risk
3. standard deviation/risk aversion
4. correlation coefficient/diversification
Risk is the potential for an investment to generate more than one return. A security that will produce only one known return is referred to as a risk- free asset, as there is no potential for deviation from the known expected outcome. Investments that have the chance of producing more than one possible outcome are called risky assets. Risk, or potential variability...
12. Decompose the Total Return on the systematic and unsystematic portions of the following asset: Expected Return market = 4% Risk Free - 1% Expected Return asset A-7% Actual Return Market = 2% Beta asset A .89 Actual Return asset A 5 % UNE (RM) = RM-E(R) UNE (RA) = RA-E(R) Systematic Portion of UNE Return = (Ry - ERBA Unsystematic Portion of UNE Return = (RA-E(R)) - (RM-E(R))BA Interpret your results
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