|Standard deviation is a measure of which one of the following?
|Assume that the market prices of the securities that trade in a particular market fairly reflect the available information related to those securities. Which one of the following terms best defines that market?
||efficient capital market
|Which of the following statements is correct in relation to a stock investment?
||The capital gains yield can be positive, negative, or zero.III. The total return can be positive, negative, or zero.
|Which one of the following categories of securities had the highest average return for the period 1926-2010?
||small company stocks
|Which one of the following categories of securities had the lowest average risk premium for the period 1926-2010?
||U.S. Treasury bills
|Which one of the following categories of securities has had the most volatile returns over the period 1926-2010?
|Which one of the following statements is correct?
||The greater the volatility of returns, the greater the risk premium.
|To convince investors to accept greater volatility, you must:
||increase the risk premium
|According to theory, studying historical stock price movements to identify mispriced stocks:
||is ineffective even when the market is only weak form efficient.
|The common stock of Air United, Inc., had annual returns of 15.6 percent, 2.4 percent, -11.8 percent, and 32.9 percent over the last four years, respectively. What is the standard deviation of these returns?