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21.
The standard deviation of a portfolio:
22.
The standard deviation of a portfolio:
23.
Which one of the following statements is correct concerning a portfolio of
20 securities with multiple states of the economy when both the securities
and the economic states have unequal weights?
24.
Which one of the following events would be included in the expected return
on Sussex stock?
25.
Which one of the following statements is correct?
26.
Which one of the following statements related to unexpected returns is
correct?
27.
Which one of the following is an example of systematic risk?
28.
Unsystematic risk:
29.
Which one of the following is an example of unsystematic risk?
30.
Which one of the following is least apt to reduce the unsystematic risk of a
portfolio?
31.
Which one of the following statements is correct concerning unsystematic
risk?
32.
Which one of the following statements related to risk is correct?
33.
Which one of the following risks is irrelevant to a well-diversified investor?
34.
Which of the following are examples of diversifiable risk?
I. earthquake damages an entire town
II. federal government imposes a $100 fee on all business entities
III. employment taxes increase nationally
IV. toymakers are required to improve their safety standards
35.
Which of the following statements are correct concerning diversifiable
risks?
I. Diversifiable risks can be essentially eliminated by investing in thirty
unrelated securities.
II. There is no reward for accepting diversifiable risks.
III. Diversifiable risks are generally associated with an individual firm or
industry.
IV. Beta measures diversifiable risk.
36.
Which one of the following is the best example of a diversifiable risk?
37.
Which of the following statements concerning risk are correct?
I. 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.
38.
The primary purpose of portfolio diversification is to:
39.
Which one of the following indicates a portfolio is being effectively
diversified?
40.
How many diverse securities are required to eliminate the majority of the
diversifiable risk from a portfolio?
41.
Systematic risk is measured by:
