How would you measure risk besides volatility (don't use Beta etc) or standard deviation?
How would you measure risk besides volatility (don't use Beta etc) or standard deviation?
Homework Answers
Risk can also measured by Alpha and R-square besides standard deviation.
A positive alpha represents a higher performance of the security/fund than it's benchmark index and vice versa.
R-square represents the correlation between the security and it's benchmark index, E.g. R-square value of 0.95 represents higher correlation whereas a value of 0.1 represents a low correlations.
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How would you measure risk besides volatility (don't use Beta
etc) or standard deviation?
How would you measure risk besides volatility or standard deviation?
How would you measure risk besides volatility or standard deviation?
Which would you use to measure the risk of an individual stock, standard deviation, variance or...
Which would you use to measure the risk of an individual stock, standard deviation, variance or beta?
QUESTION 37 A well-informed institutional investor would most likely use standard deviation to measure: a. Total...
QUESTION 37 A well-informed institutional investor would most likely use standard deviation to measure: a. Total risk. b. Systematic risk. c. Unsystematic risk. d. Equity risk premium. QUESTION 38 A well-informed individual investor would most likely use beta to measure: a. Total risk. b. Systematic risk. c. Unsystematic risk. d. Equity risk premium.
how would you measure volatility? Are you referring to the rents that can be generated or...
how would you measure volatility? Are you referring to the rents that can be generated or the market value of the parcel? How would you say the volatility of real estate compares to other asset classes?
Beta is a measure of systematic risk. It is a relative risk measure to show you...
Beta is a measure of systematic risk. It is a relative risk measure to show you how sensitive the stock price is related to market movement, i.e., the S&P 500 index. When calculating beta, you need to regress y (stock return) against x (S&P 500 index return) and the coefficient of the x is the beta, please refer to the excel posted on module 6. I would like you to comment on the betas of the following ETFs: UGAZ, TVIX...
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...
13. Beta is a measure of a stock's: Systematic Risk Risk relative to the market Both...
13. Beta is a measure of a stock's: Systematic Risk Risk relative to the market Both A and B None of the above The most volatile stock would have Beta. Higher than 1.0. Lower than 1.0. Very close to 0.0. Beta is not related to volatility. Discounted cash flow techniques used in valuing common stock are based on: future value analysis. present value analysis. The CAPM. the APT. c.
Standard deviation versus coefficient of variation as measures of risk Greengage, Inc., a successful nursery, is...
Standard deviation versus coefficient of variation as measures of risk Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an acceptable return. Data on four possible projects appear in the following table ! a. Which project is least risky, judging on the basis of range? Data Table b. Which project has the lowest standard deviation? Explain why standard deviation may not be an entirely appropriate measure of risk for purposes of this...
If holding assets in a diversified portfolio, why is beta, and not standard deviation, the appropriate...
If holding assets in a diversified portfolio, why is beta, and not standard deviation, the appropriate measure of risk for an individual asset? 6. If holding assets in a diversified portfolio, why is standard deviation the appropriate measure of risk for the portfolio? 7.
Understanding risk: Part A: Stock A has a standard deviation of 10% and an expected return...
Understanding risk: Part A: Stock A has a standard deviation of 10% and an expected return of 8%. Stock B has a standard deviation of 15% and an expected return of 11%. A client wants to know which stock has a better risk-return profile. How would you answer her? Part B: Stock C has a standard deviation of 20% and a beta of 1.20. Stock D has a standard deviation of 16% and a beta of 1.44. A client wants...
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...
13. Beta is a measure of a stock's: Systematic Risk Risk relative to the market Both A and B None of the above The most volatile stock would have Beta. Higher than 1.0. Lower than 1.0. Very close to 0.0. Beta is not related to volatility. Discounted cash flow techniques used in valuing common stock are based on: future value analysis. present value analysis. The CAPM. the APT. c.
Standard deviation versus coefficient of variation as measures of risk Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an acceptable return. Data on four possible projects appear in the following table ! a. Which project is least risky, judging on the basis of range? Data Table b. Which project has the lowest standard deviation? Explain why standard deviation may not be an entirely appropriate measure of risk for purposes of this...
If holding assets in a diversified portfolio, why is beta, and not standard deviation, the appropriate measure of risk for an individual asset? 6. If holding assets in a diversified portfolio, why is standard deviation the appropriate measure of risk for the portfolio? 7.
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