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- Which of the following measures the total risk of a portfolio? A. Standard Deviation B. Correlation Coefficient C. Beta D. AlphaIt is a risk adjusted performance measure that represents the average return on a portfolio. a. sharpe ratio b. Treynor indexThe expected return of a portfolio is simply the weighted average of the expected returns for the individual assets within the portfolio. Group of answer choices True False
- Which of the following measures reflects the excess return earned on a portfolio per unit of its systematic risk a. Treynor’s measure b. Sharpe’s measure c. Jensen’s measure d. Total measureThe expected rate of return of an investment ________. a. equals one of the possible rates of return for that investment b. equals the required rate of return for the investment c. is the mean value of the probability distribution of possible returns d. is the median value of the probability distribution of possible returns e. is the mode value of the probability distribution of possible returnsDefine Expected return on a portfolio
- Beta is which of the following: A) standard deviation. B) total risk. C) Beta is the relationship which is between an investment's return, and the market return. D) unsystematic risk.Define expected rate of return on a portfolioIs the portfolio risk the weighted average of the variance or covariance?
- Illustrate the formula for portfolio beta and portfolio expected return.In the context of the Capital Asset Pricing Model (CAPM), the relevant measure of risk is A. standard deviation of returns. B. beta. C. variance of returns. D. unique risk.In evaluating portfolio return we use the market values at the beginning of the period to compute the weighting. Explain why.