You are watching: The intercept point of the security market line is the rate of return which corresponds to:
The _____ tells united state that the supposed return on a risky asset depends only on the asset"s nondiversifiable risk.efficient sectors hypothesissystematic danger principleopen markets theoremlaw that one priceprinciple of diversification
The intended return on a portfolio considers which of the adhering to factors?I. Portion of the portfolio invest in each individual securityII. Projected claims of the economyIII. The performance of every security offered various financial statesIV. Probability of occurrence for each state of the economyI and also III onlyII and also IV onlyI, III, and IV onlyII, III, and IV onlyI, II, III, and IV
The conventional deviation of a portfolio:is a measure up of the portfolio"s organized risk.is a weighed median of the standard deviations that the separation, personal, instance securities organized in the portfolio.measures the amount of diversifiable risk innate in the portfolio.serves as the communication for computing the appropriate risk premium for that portfolio.can be much less than the weighted mean of the standard deviations the the individual securities held in that portfolio.
Which among the following statements related to unexpected return is correct?All announcements by a firm affect that firm"s unexpected returns.Unexpected returns over time have actually a an adverse effect ~ above the complete return of a firm.Unexpected return are relatively predictable in the short-term.Unexpected return generally cause the actual go back to vary significantly from the meant return end the long-term.Unexpected returns have the right to be either hopeful or negative in the brief term but tend to it is in zero over the long-term.
Unexpected returns can be either confident or negative in the quick term yet tend to it is in zero end the long-term.
Which among the following is an example of unsystematic risk?income taxes room increased throughout the boarda nationwide sales tax is adoptedinflation decreases in ~ the national levelan raised feeling the prosperity is felt roughly the globeconsumer security on entertainment reduced nationally
Which among the following is the ideal example of a diversifiable risk?interest prices increaseenergy costs increasecore inflation increasesa firm"s sales decreasetaxes decrease
The intercept point of the security sector line is the price of return which corresponds to:the risk-free rate.the sector rate.a return of zero.a return of 1.0 percent.the industry risk premium.
A stock v an yes, really return the lies over the security market line has:more systematic risk than the all at once market.more risk than the warranted through CAPM.a greater return than meant for the level of risk assumed.less systematic risk than the in its entirety market.a return identical to the level of risk assumed.
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The expected price of return top top a share portfolio is a weighted typical where the weights are based on the:number of shares own of every stock.market price per share of each stock.market worth of the investment in each stock.original amount invested in every stock.cost every share of each stock held.