A beta of 1 means that the stock has no systematic risk and a beta of 0 means that the stock has the same systematic risk as the market. O False O True O No answer text provided. O No answer text provided.
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A: according to the rule, because you have posted multiple questions, we will answer the first question…
Q: The covariance between stock A and market return is 135. The standard deviation of market’s return…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
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- 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.The appropriate measure of risk used in Sharpe's measure of portfolio evaluation is a. Range b. Variance c. Beta d. Standard deviationProvide a descriptive formula for each of the following (e.g., Total risk =?+?): a. Total risk= b. Discount rate= c. Adjusted NPV=
- 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 measureIn the context of the capital asset pricing model, the systematic measure of risk is captured by _________. Group of answer choices unique risk beta standard deviation of returns variance of returnsWhich of the following measures the total risk of a portfolio? A. Standard Deviation B. Correlation Coefficient C. Beta D. Alpha
- The VIX measures Select one: a.Realized volatility B. Current volatility C. Historical volatility D. Implied volatilitya)define market risk. b)define delta-hedged position and describe delta hedging. c)describe gamma hedging and vega hedging. d)define and explain value at risk (VAR). e)describe the analytical (variance-covariance) method of calculating VAR, and discuss its advantages and disadvantages.Which one of the following is the formula that explains the relationship between the expected returnon a security and the level of that security's systematic risk?Select one:a. Time value of money equationb. Unsystematic risk equationc. Expected risk formulad. Market performance equatione. Capital asset pricing model
- The slope of the security market line is the: Group of answer choices reward-to-risk ratio portfolio weight beta coefficient risk-free interest rate market risk premiumWhat is a risk measure? a Alpha b Required return on the market portfolio c Standard deviation of historical returnsIs the portfolio risk the weighted average of the variance or covariance?