Question: 1. A stock with a low Beta would have a: Regression line with a steep slope Regression line with a high y-intercept Regression line with

1. A stock with a low Beta would have a:

Regression line with a steep slope

Regression line with a high y-intercept

Regression line with a low (relatively flat) slope

Regression line with a high degree of scatter

None of the above

2. In an historical graph of stock performance, volatility is depicted by:

The intercept of the graph (left-most point)

The overall slope or trend of the graph

The ups and downs of the graph

The high of the end point (right-most point) on the graph

3. Which of these differs in meaning from the others:

Systematic risk

Company-unique risk

Market risk

Non-diversifiable risk

4. The slope of the Security Market Line is the market risk premium (Rm Rf)

true or false?

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