Finance

a portfolio is a group of assets held by an investor
28 percent of stock portfolio weight
unsystematic risk is diversifiable, assets specific, unrewarded, unique. NOT MARKET RISK
amount of systematic risk present in a particular risky asset relative to that in an average risky asset is measured by the beta coefficient
slope of the security market line represents market risk premium
security market line is defined as a positively sloped straight line that displays the relationship between the expected return and beta of either a security or a portfolio
best example of unsystematic risk a warehouse fire
systematic risk example increase in consumption created by a reduction in personal tax rates
standard deviation measures ? total risk
beta measure ? systematic risk
risk premium for an individual security is based on which one of the following types of risk systematic
represents the amount of compensation an investor should expect to receive for accepting the unsystematic risk associated with an individual security zero
portfolio diversification eliminates unsystematic risk
a portfolio is compromised of 35 securities with varying betas. The lowest beta for individual security is .74 and the highest is 1.51.. The portfolio beta will do what? will be greater than or equal to .74 but less than or equal to 1.51
the vertical intercept of the security market line risk free rate
capital asset pricing model considers the relationship between the fluctuation in a securities returns versus the market returns

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