Please answer both QUESTION 5 Which of the following is not a reason why beta may differ between sources: Beta is based on historical values. Beta may be calculated using dfferent periodicities, such as monthly, weekly, or daily. The market benchmark may differ. Beta may be calculated using 3 years of data instead of 5 years of data. QUESTION 6 According to the CAPM, which of the following risks is irrelevant? O A. Market risk • B. All risks are always relevant 0 C. Unsystematic risk • D. Systematic risk
Please answer both QUESTION 5 Which of the following is not a reason why beta may differ between sources: Beta is based on historical values. Beta may be calculated using dfferent periodicities, such as monthly, weekly, or daily. The market benchmark may differ. Beta may be calculated using 3 years of data instead of 5 years of data. QUESTION 6 According to the CAPM, which of the following risks is irrelevant? O A. Market risk • B. All risks are always relevant 0 C. Unsystematic risk • D. Systematic risk
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer both QUESTION 5
Which of the following is not a reason why beta may differ between sources:
- Beta is based on historical values.
- Beta may be calculated using dfferent periodicities, such as monthly, weekly, or daily.
- The market benchmark may differ.
- Beta may be calculated using 3 years of data instead of 5 years of data.
QUESTION 6
According to the CAPM, which of the following risks is irrelevant?
O A. Market risk
• B. All risks are always relevant
0 C. Unsystematic risk
• D. Systematic risk
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