Question
I've seen different answers for these questions. Your help is appreciated. 52. A well-diversified portfolio with a beta of 2.0 is twice as risky as
I've seen different answers for these questions. Your help is appreciated.
52. A well-diversified portfolio with a beta of 2.0 is twice as risky as the market portfolio A. True B. False
58. A stocks contribution to the risk of a fully diversified portfolio depends on its sensitivity to market changes. This sensitivity is generally known as beta.
A. True
B. False
61. The Capital Asset Pricing Model has proven that, in a competitive market, the expected risk premium varies in direct proportion to:
A. Dividend yield
B. Price/Earnings Ratio
C. Earnings per Share
D. Beta
62. In well-functioning markets, nobody should acquire/hold a stock that offers a return less than the market risk premium.
A. True
B. False
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