Typically, the expected return for a company's stock is estimated using historical returns for the stock.

True or False

For Stock Z, the following three monthly returns were realized: Month 1 = 5%, Month 2 = 14%, Month 3 = -8%. The return for the three-month period isnotfound by calculating the average monthly return (i.e., add the three monthly returns and divide by three).

True or False

The exposure of a company's stock to an earthquake near its main facilities is an example of unsystematic risk.

True or False

Answer rating: 100% (QA)

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