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Question 1 (1 point) In finance, we use to measure the variability of potential return on an investment around its expected return. OA) coefficient of
Question 1 (1 point) In finance, we use to measure the variability of potential return on an investment around its expected return. OA) coefficient of variation B) standard deviation C) correlation coefficient D) covariance Question 3 (1 point) In a 2-asset portfolio, it is possible to reduce the risk of the portfolio to zero if A) the correlation coefficient between them is -0.5. B) the correlation coefficient between them is 0. C) the correlation coefficient between them is -1. D) the correlation coefficient between them is +1. Question 4 (1 point) What does 'terms currency' stand for? A) It is always US dollars. B) It is always the domestic currency. C) It is the currency which is more widely accepted in the global market. D) It is the currency in whose terms the currency being traded is expressed. Question 5 (1 point) Suppose your company, based in Sydney Australia, just received 10 million USD. The account bank provides AUD/USD quotes as 0.7895-05. At what FX rate your company will complete the FX transaction? A) 0.7895 B) 0.7900 C) 0.7905 D) 0.7805
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