Beta is defined as the:    a. Amount of systematic risk in a risky asset relative to that in an average asset.   b. Ratio of unsystematic risk in a risky asset relative to the systematic risk in the overall market.   c. Amount of systematic risk in a risky asset relative to that of a risk-free asset.   d. Ratio of the total risk in a risky asset relative to the systematic risk in the overall market.   e. Slope of the security market line

Beta and standard deviation differ as risk measures in that beta measures:a. Only unsystematic risk, while standard deviation measures total risk.b. Only systematic risk, while standard deviation measures total risk.c. Both systematic and unsystematic risk, while standard deviation measures only unsystematic risk.d. Both systematic and unsystematic risk, while standard deviation measures only systematic risk.

The risk associated with the overall market is referred to as _____ risk. a. unsystematic b. diversified c. portfolio d. systematic

Market risks are: B. Interest rate risk, foreign exchange risk, portfolio concentration, commodity price risk D. Equity price risk, interest rate risk, foreign exchange risk, commodity price risk C. Foreign exchange risk, commodity price risk, issue risk, credit risk A. Equity price risk, transaction risk, foreign exchange risk, commodity price risk

Question No. 1:                                                                                        Explain the following Financial Terminology and then determined the relationship between its. portfolio efficient Beta Coefficient frontier efficient Diversification Diversifiable Risk Systematic Risk

The systematic risk principle states that the expected return on a risky asset depends only on which one of the following? Unsystematic risk Market risk Diversifiable risk

a)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.

Define each of the following terms: d. Stand-alone risk; corporate (within-firm) risk; market (beta) risk

According to the capital asset pricing model, assets with Lower; lower; unsystematic Higher; higher, unsystematic Lower; higher; unsystematic Higher; higher; systematic Higher; lower; systematic betas have expected returns because betas quantify the degree of risk. Please fill in the blank.

Define the terms, or give short explanations.           -risk-free rate -risk management -risk neutrality risk preference -risk premium -risk-return trade-off