An “aggressive” common stock would have a “beta”
A. equal to zero.
B. greater than one.
C. equal to one.
D. less than one.
An “aggressive” common stock would have a “beta”
Risk and Return Quiz / MCQs
A line that describes the relationship between an individual security’s returns and returns on the market portfolio.
A line that describes the relationship between an individual security’s returns and returns on the market portfolio.
A. characteristic line
B. security market line
C. capital market line
D. beta
According to the capital-asset pricing model (CAPM), a security’s expected (required) return is equal to the risk-free rate plus a premium
According to the capital-asset pricing model (CAPM), a security’s expected (required) return is equal to the risk-free rate plus a premium
A. equal to the security’s beta.
B. based on the unsystematic risk of the security.
C. based on the total risk of the security.
D. based on the systematic risk of the security.
Beta is the slope of
Beta is the slope of
A. the security market line.
B. the capital market line.
C. a characteristic line.
D. the CAPM.
The greater the beta, the ………………….. of the security involved.
The greater the beta, the ………………….. of the security involved.
A. greater the unavoidable risk
B. greater the avoidable risk
C. less the unavoidable risk
D. less the avoidable risk
A measure of “risk per unit of expected return.”
A measure of “risk per unit of expected return.”
A. standard deviation
B. coefficient of variation
C. correlation coefficient
D. beta