An estimation by marginal investor, a higher expected return is earned on A. more risky securities B. less risky securities C. less premium D. high premium (Don't use chatgpt otherwise give 10 downvotes)

Which one of the following statements is correct? Group of answer choices   The lower the average return, the greater the risk premium.   The greater the volatility of returns, the greater the risk premium.   The lower the volatility of returns, the greater the risk premium.   The risk premium is not affected by the volatility of returns.   The risk premium is unrelated to the average rate of return.

he benefit in risk reduction from adding securities Blank______ as more and more securities are added to a portfolio. Multiple choice question. remains the same increases declines

A change in the risk premium, E(Rm) - Rf, results in... Group of answer choices 1. A change in the vertical intercept of the Security Market Line (SML) 2. No change in the return/beta relationship. 3. A change in the horizontal intercept of the Security Market Line (SML) 4. A change in the slope of the Security Market Line (SML)

The benefit in risk reduction from adding securities Blank______ as more and more securities are added to a portfolio. Multiple choice question. increases declines remains the same

please quickly 11 The following is a correct statement concerning risk premium: A.The lower the average rate of return, the greater the risk premium B.The risk premium is not affected by the volatility of returns. C.The lower the volatility of returns, the greater the risk premium. D.The greater the volatility of returns, the greater the risk premium. E.The risk premium is not correlated to the average rate of return.

b. As an equity portfolio manager, you may use certain risk-adjusted performance measures. Describe and discuss the following measures of performance evaluation! Treynor Index, William Sharpe, Michael Jensen Using the following table evaluate which is better than other using three different measure of performance evaluation. Asset X E(R)% 12 beta Stdv 1.25 16 Y 11 1.0 12 Risk-free 3 0 0 Market index 12 1 12

When estimating the cost of equity by use of the CAPM, three potential problems are (1) whether to use long-term or short-term rates for rRF, (2) whether or not the historical beta is the beta that investors use when evaluating the stock, and (3) how to measure the market risk premium, RPM. These problems leave us unsure of the true value of rs.   a. true   b. false

Which of the following choices best completes the following statement? Explain. An investor with a higher degree of risk aversion, compared to one with a lower degree, will most prefer investment portfoliosa. with higher risk premiums.b. that are riskier (with higher standard deviations).c. with lower Sharpe ratios.d. with higher Sharpe ratios.

Please answer both QUESTION 7 According to the capital asset pricing model (CAPM), fairly priced securities should have A. A non-zero alpha. в.A fair return based on the level of systematic risk. C. A fair return based on the level of unsystematic risk. D.A beta of 1. QUESTION 8 Diversification can increase fair return. True False