Standard deviation is divided by expected rate of return is used to calculate_________?
(A) Coefficient of variation
(B) Coefficient of deviation
(C) Coefficient of standard
(D) Coefficient of return
In capital asset pricing model, stock with high standard deviation tend to have________?
(A) Low variation
(B) Low beta
(C) High beta
(D) High variation
Risk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as____________?
(A) Stock risk
(B) Portfolio risk
(C) Diversifiable risk
(D) Market risk
A portfolio consists of all stocks in a market is classified as____________?
(A) Market portfolio
(B) Return portfolio
(C) Correlated portfolio
(D) Diversified portfolio
In an individual stock, relevant risk is classified as___________?
(A) Alpha coefficient
(B) Beta coefficient
(C) Stand-alone coefficient
(D) Relevant coefficient
Weighted average of probabilities is classified as____________?
(A) Average rate of return
(B) Expected rate of return
(C) Past rate of return
(D) Weighted rate of return
According to market risk premium, an amount of risk premium depends upon investor______________?
(A) Risk taking
(B) Risk aversion
(C) Market aversion
(D) Portfolio aversion
Correct measure of risk of stock is called_____________?
(A) Alpha
(B) Beta
(C) Variance
(D) Market relevance
Portfolio which consists of perfectly positive correlated assets having no effect of___________?
(A) Negativity
(B) Positivity
(C) Correlation
(D) Diversification
Mostly in financials, risk of portfolio is smaller than that of asset’s________?
(A) Mean
(B) Weighted average
(C) Mean correlation
(D) Negative correlation