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Standard deviation Beta Security A 40% 0.5 Security B 20% 1.5 Which security has a greater total risk? Explain. (2marks) Which security has greater systematic
Standard deviation Beta
Security A 40% 0.5
Security B 20% 1.5
- Which security has a greater total risk? Explain. (2marks)
- Which security has greater systematic risk? Explain. (2marks)
- Can diversification eliminate systematic risk? Explain. (2marks)
- The security market line (SML) is used to describe the relationship between systematic risk and expected return. If an investment has a positive NPV, would it plot above or below the SML? Explain. (4 marks)
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Financing Nonprofits Putting Theory Into Practice
Authors: Young, Dennis R.
1st Edition
0759109885,0759114129
