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10. The coefficient measures a stock's volatility relative to that of an average stock. 11. A stock that is twice as volatile as the market
10. The coefficient measures a stock's volatility relative to that of an average stock. 11. A stock that is twice as volatile as the market would have a beta coefficient of --- while a stock with a beta of 0.5 would be only as volatile as the market. 12. The beta coefficient of a portfolio is the weighted ... average of the betas of the individual stocks. 13. The minimum expected return that will induce investors to buy a particular security is the rate of return 14. The security used to measure the rate is a U.S. Treasury security. 15. The risk premium for a particular stock may be calculated by mulciplying the market risk premium times the stock's coefficient 16. A stock's required rate of return is cqualco thc rate plus the stock's premium 17. The risk-free rate of interest consists of two elements: the risk-free rate of return plus a(n) premium. 18. Changes in investors' risk aversion alter the of the Security Market Line. 19. refers to the chance that some unfavorable event will occur. 20. An asset's risk can be analyzed in two ways: (1) on a stand alone basis and (2) on a(.1) basis. 21. Where the number of possible outcomes is virtually unlimited
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