What is the uncertain or risky return on a security? Multiple choice question. It is the portion of the return on a security that depends on unknown information. It is the portion of the return on a security that is unaffected by any present or future information. It is the portion of the return on a security that depends on known information. It is the return on a security that is classified as risky by bond rating agencies.

The return an investor in a security receives is the Blank______ of that security to the company that issued it. Multiple choice question. cost return economic value added risk

The capital asset pricing model (CAPM) contends that there is systematic and unsystematic risk for an individual security. Which is the relevant risk variable and why is it relevant? Why is the other risk variable not relevant?

Which one of the following statements is correct concerning unsystematic risk? An investor is rewarded for assuming unsystematic risk. Beta measures the level of unsystematic risk inherent in an individual security. Eliminating unsystematic risk is the responsibility of the individual investor. Standard deviation is a measure of unsystematic risk. Unsystematic risk is rewarded when it exceeds the market level of unsystematic risk. оо O O

Risk and Return: Introduction Risk is an important concept affecting security prices and rates of return. Risk is the chance that some unfavorable event will occur, and there is a trade-off between risk and return. The higher an investment's risk, the-Select-the return required to induce investors to purchase the asset. This relationship between risk and return indicates that investors are risk ; investors dislike risk and require -Select- Vrates of return as an inducement to buy riskier securities. A represents the additional compensation investors require for bearing risk; it is the difference betweer the expected rate of return on a given risky asset and that on a less risky asset. An asset's risk can be considered in two ways: On a stand-alone basis and in a portfolio context. -Select- -Select-

The beta of a security measures Blank______. Multiple choice question. the responsiveness of the security's return to the return on the market as a whole the responsiveness of the security's total risk to the return on the market as a whole the correlation between the security and the risk-free rate the responsiveness of the security's unsystematic risk to the return on the market as a whole

The beta of a security measures Blank______. Multiple choice question. the responsiveness of the security's total risk to the return on the market as a whole the responsiveness of the security's unsystematic risk to the return on the market as a whole the responsiveness of the security's return to the return on the market as a whole the correlation between the security and the risk-free rate

What type of risk is the risk that belongs to the market as a whole?     Systematic risk     Unsystematic risk (or nonsystematic risk)     Total risk

Systematic risk is defined as: a risk that specifically affects an asset or small group of assets. any risk that affects a large number of assets. any risk that has a huge impact on the return of a security. the random component of return. None of the above.

List which of the following statement(s) concerning risk are correct? 1. Nondiversifiable risk is measured by beta. II. The risk premium increases as diversifiable risk increases. III. Systematic risk is another name for nondiversifiable risk. IV. Diversifiable risks are market risks you cannot avoid.