Beta measures a security's sensitivity to _________.
Multiple Choice
a) diversifiable risk
b) firm-specific risk
c) unique risk
d) market risk
Beta measure's the sensitivity of the asset's returns to market returns, its non-diversifiable risk, its systematic risk, or market risk.
Thus the answer is d)
Beta measures a security's sensitivity to _________. Multiple Choice a) diversifiable risk b) firm-specific risk c)...
Beta is a measure of ______? - Firm specific risk - Unique risk - Diversifiable risk - Market risk
Question1 This is defined as the portion of total risk that is not diversifiable firm specific risk O market risk O total risk O modern portfolio risk DI Question 2 4 pts A company has a beta of 3.75. If the market return is expected to be 20 percent and the risk-free rate is 9.5 percent, what is the company's required return? C) 55.625% 39.375% , 48.875% ( 33.25% nativeplayba....collab BlackboardColl....msi nativeplayba....collab 4:
is risk that cannot be diversified away. O A. Diversifiable risk O B. Unsystematic risk O C. Systematic risk O D. Firm-specific risk is risk that cannot be diversified away. O A. Diversifiable risk O B. Unsystematic risk O C. Systematic risk O D. Firm-specific risk
Which of the following statements is/are INCORRECT? I. Beta measures a security's market risk, also known as systematic risk. II. SML is a graphical depiction of WACC model. III. If investors become more risk averse, the slope of SML will increase accordingly. IV. Other things being equal, a security's required rate of return doubles when its beta value doubles. V. Diversification will normally reduce the riskiness of a portfolio of securities. VI. Federal Reserve cuts an interest rate is considered...
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
Marker risk is also called: a. Systematic risk and diversifiable risk b. Systematic risk and unique risk c. Non-diversifiable risk and systematic risk d. Unique risk and non-diversifiable risk
(a) _______ % of the variance is explained by this regression. (b) The firm-specific risk is ______. (c) The beta of this stock is ______. Hence, the stock is ______% riskier than the market. (d) The characteristic line for this stock is E(Rstock) = ___ + ___ E(Rmarket) (e) The alpha(intercept) has a t-Stat = ______. This is ______ than 2. Therefore, we can treat this alpha as if it’s equal/not equal to (circle one) zero and conclude the CAPM...
Diversifiable risk is also called: a) Diversifiable Return b) Systematic risk c) Unsystematic risk d) All of the above
Risk factors that are expected to affect only a specific firm are referred to as: risk premiums. diversifiable risk. systematic risk. market risk.
Which of the following risks of a stock are likely to be firm-specific, diversifiable risks, and which are likely to be systematic risks? Which risks will affect the risk premium that investors will demand? A. The risk that the founder and CEO retires B. The risk that oil prices rise, increasing production costs C. The risk that a product design is faulty and the product must be recalled D. The risk that the economy slows, reducing demand for the firm's...