« previous next »

Author Question: Which of the following is NOT a definition of beta? A) A measure of systematic risk B) A measure ... (Read 59 times)

roselinechinyere27m

  • Hero Member
  • *****
  • Posts: 557
on: Jul 10, 2018
Which of the following is NOT a definition of beta?
 
  A) A measure of systematic risk
  B) A measure of risk that can be avoided
  C) A statistical measure of an individual asset's or portfolio's co-movement with the returns of the market
  D) A measure of nondiversifiable risk

Question 2

Joel owns the following portfolio of securities. What is the beta for the portfolio?
 
  Company Beta Percent of Portfolio
  Exxon-Mobil .95 40
  Pacific Industries 1.20 35
  Payson Restaurants 1.35 25
 
  A) 0.9500
  B) 1.0000
  C) 1.1375
  D) 1.1705


ju

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: B
Explanation: B) Beta is a measurement of systematic risk, which cannot be avoided.

Answer to Question 2

Answer: C
Explanation: C) p =  i  wi = .95  40 + 1.20  35 + 1.35  25 = 1.14.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

roselinechinyere27m

  • Hero Member
  • *****
  • Posts: 557
Reply #2 on: Jul 10, 2018
TY


ju

  • Sr. Member
  • ****
  • Posts: 325
Reply #3 on: Jul 10, 2018
Happy to Help


« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

beta lactamase mechanism beta lactamase mechanism
Risk for injury Risk for injury
Risk for falls cont'd Risk for falls cont'd
Beta-lactam antibiotics: The beta-lactam ring is common to many different classes of antibiotics. Beta-lactam antibiotics: The beta-lactam ring is common to many different classes of antibiotics.
To measure engine oil pressure, remove the oil pressure sending (sender) unit usually located near ... To measure engine oil pressure, remove the oil pressure sending (sender) unit usually located near ...
BETA BLOCKERS BETA BLOCKERS
Video: X chromosome inactivation in calico cats

For a complete list of videos, visit our video library