Question: True or False: 33. Diversification can increase expected return 34. Diversification can reduce the level of total risk 35. Diversification can reduce the level of
True or False:
33. Diversification can increase expected return
34. Diversification can reduce the level of total risk
35. Diversification can reduce the level of systematic risk
36.diversification can eliminate unsystematic risk
37. Diversification can reduce standard deviation
38. Diversification can increase the reward-to-risk ratio.
39. When computing the CAPM return for Walmart Stock, you should use the yield on the 10-year treasury bond.
40. Practitioners most often refer to the Dow Jones Industrial Average as their proxy for overall market performance.
41. When comparing HPR to CAPM Return, a positive alpha stock is one that has a price that is currently too low.
42. You would expect that Target stock would have a higher beta than Tesla stock.
43. If the 3 year rate is 4%, if the 4 year rate is 3%, than the forward rate will b higher than 4%
44. When comparing HPR to CAPM return, a positive alpha stock is one that has fair return that is greater than its actual return given the current price and expected cash flows.
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