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Please indicate the correct letter only The excess return required from a risky asset over that required from a risk-free asset is called the: 1.

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Please indicate the correct letter only
The excess return required from a risky asset over that required from a risk-free asset is called the: 1. a. risk premium. b. geometric premium. c. excess retum. d. average retum. e. variance. 2. If the stock prices only reflect historical information, then the stock market is form efficient. a. weak b. semiweak c. semistrong d. strong e. perfect 3. Which of the following statements concerning syst I. Systematic risk is measured by standard deviation. I. Systematic risk is another name for nondiversifiable risk. 111 The risk pre ematic risk are correct? nium increases as the systematic risk increases Systematic risks are those risks you cannot avoid if you invest in the financial m I and III only IV. a. b. c. d. e. and IV only I, II, and III only II, III, and IV only I, II, III, and IV he primary purpose of portfolio diversification is to eliminate all risks eliminate systematic risk. 4. T a. increase returns and risks. b. c. eliminate idiosyncratic risk. d. e. lower both returns and risks. risk. 5. Beta measures a. diversifiable b. total c. systematic d. asset specific e unsystematic

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