1. In the context of the CAPM, the relevant risk is: a. Unique Risk b. Market...
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1. In the context of the CAPM, the relevant risk is: a. Unique Risk b. Market risk c. Standard deviation of returns. d. Variance of returns e. Derivatives risk. None of the above. 2. According the CAPM a well-diversified portfolio's rate of return is a function of: a. Systematic risk b. Unsystematic risk c. Unique risk d. Reinvestment risk e. Credit risk f. Derivatives risk 3. The RF rate and the expected market rate of return are 6 and 12% respectively. According the CAPM, the expected rate of return on Stock X with a beta of 1.2 is: a. 6% b. 14.4% c. 12% d. 13.2% e. 18% f. 12.9% 1. In the context of the CAPM, the relevant risk is: a. Unique Risk b. Market risk c. Standard deviation of returns. d. Variance of returns e. Derivatives risk. None of the above. 2. According the CAPM a well-diversified portfolio's rate of return is a function of: a. Systematic risk b. Unsystematic risk c. Unique risk d. Reinvestment risk e. Credit risk f. Derivatives risk 3. The RF rate and the expected market rate of return are 6 and 12% respectively. According the CAPM, the expected rate of return on Stock X with a beta of 1.2 is: a. 6% b. 14.4% c. 12% d. 13.2% e. 18% f. 12.9%
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Related Book For
Statistics For Business And Economics
ISBN: 9780321826237
12th Edition
Authors: James T. McClave, P. George Benson, Terry T Sincich
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