Question
the variance is the average squared difference between which of the following? Group of answer choices Actual return and average return Actual return and the
the variance is the average squared difference between which of the following? Group of answer choices Actual return and average return Actual return and the real return Actual return and (average return/N - 1) Average return and the standard deviation Actual return and the risk-free rate
The principle of diversification says that: Group of answer choices Spreading an investment across many diverse assets cannot eliminate any risk. Spreading an investment across many diverse assets will eliminate the diversifiable part of risk. Concentrating an investment in two or three large stocks will eliminate all your risk. Concentrating an investment in two or three large stocks will greatly reduce your overall risk.
The systematic risk principle states that the expected return on a risky asset depends only on the assets _________ risk. Group of answer choices Unsystematic Market Asset-specific Unique Diversifiable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started