What asset class had the highest return over the period covered in the chapter? Large company stocks, small company stocks, corporate debt, long term US treasuries, of short term US treasuries Pick One.

Which asset class had the least risk? Large company stocks, small company stocks, corporate debt, long term US treasuries, of short term US treasuries Pick One.

Which company would have a higher risk premium Ameren (a local utility) or Best Buy?

How do we measure risk in finance?

What are the three forms of market efficiency names only?

What is the difference between sensitivity analysis and scenario analysis? You own a two stock portfolio of Asset A and Asset B. Asset A is 60% of the portfolio and Asset B is 40% of the portfolio. Asset A is expected to earn 18% and Asset B is expected to earn 14%. What is the expected return of the portfolio?

Does random diversification increase or decrease the variance of a portfolio?