The relevant measure of risk for a diversified portfolio of assets is the portfo
ID: 2700277 • Letter: T
Question
The relevant measure of risk for a diversified portfolio of assets is the portfolio%u2019s level of: Answer
systematic risk
unsystematic risk
diversifiable risk
company specific risk
The linear relation between the returns on a stock and the returns on the market portfolio is called the: Answer
alpha
beta
covariance
coefficient of variance
A (n) ________ portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return. Answer
efficient
profit maximizing
idiosyncratic
diverse
The Security Market Line describes the relationship between the: Answer
expected return on securities and their systematic risk
expected return on securities and their unsystematic risk
expected return on a security and the expected return on the market portfolio
risk-free rate and the expected return on the market portfolio
The portfolio that contains all risky assets is known as the: Answer
market portfolio
efficient portfolio
efficient frontier
value-weighted portfolio
Explanation / Answer
a)unsystematic risk
b) beta
c)efficient
d)