Question: Please answer with correct letter The excess return required from a risky asset over that required from a risk-free asset is called the: 1. a.

Please answer with correct letter

The excess return required from a risky asset over that required from a risk-free asset is called the: 1. a. risk premium. b. geometric premium. c. excess retum. d. average retum. e. variance. If the stock prices only reflect historical information, then the stock market is form efficient. 2. a. weak b. semiweak c. semistrong d. strong e. perfect 3. Which of the following statements concerning syst I. Systematic risk is measured by standard deviation. II. Systematic risk is another name for nondiversifiable risk. III. The risk pre IV. Systematic risks are those a. I and III only ematic risk are correct? nium increases as the systematic risk increases risks you cannot avoid if you invest in the financial m II and IV only I, II, and III only II, III, and IV only I, II, III, and IV b. c. d. e. 4. T he primary purpose of portfolio diversification is to a. increase returns and risks. b. c. eliminate idiosyncratic risk. d. eliminate all risks eliminate systematic risk. e. lower both returns and risks. risk. 5. Beta measures a. diversifiable b. total c. systematic d. asset specific e. unsystematic

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