1. Value at risk (VaR) is a measure known as all of the following, except: a. price of risk b. market risk premium (market risk premium) c. degree of risk aversion d. reward demanded per unit of volatility 2. The comparison between the investment portfolio and the selected market index (benchmark) does not necessarily have to coincide in the same period. a. True b. False 

3. The coefficient of determination, R2, measures the percentage of the variance of the portfolio's return that is explained by the market variance. Therefore, the higher R2, the more diversification of the investment portfolio the fund manager is achieving. a. True b. False