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Match the following descriptions with the correct Terms: ( A ) Risk Premium ( B ) Value at Risk ( VAR ) ( E )
Match the following descriptions with the correct Terms:
A Risk Premium
B Value at Risk VAR
E Risk Aversion
F Kurtosis
I Passive Strategy
C Dollar Weighted Return
G Geometric Average
J CML
D Capital Allocation
H Price of Risk
tableDescriptionLetter of the TermThe ratio of portfolio risk premium to variance.,An expected return in excess of that on riskfree securitiestableMeasure of the fatness of the tails of a probability distributionrelative to that of a normal distribution.Measure of downside risk.,The internal rate of returm on an investment.,Investment policy that avoids security analysis.,The choice between risky and riskfree assets.,Reluctance to accept risk.,tableThe single perperiod return that gives the same cumulativeperformance as the sequence of actual returns.tableThe capital allocation line using the market index portfolio as therisky asset.
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