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Which that the following statements concerning risk room correct?I. Non-diversifiable threat is measure up by beta.II. The hazard premium rises as diversifiable risk increases.III. Systematic risk is another name because that non-diversifiable risk.IV. Diversifiable dangers are market dangers you can not avoid.
Assume the sector rate that return is 10.1 percent and also the risk-free price of return is 3.2 percent. Lexant stock has actually 2 percent much less systematic danger than the market and has an actual return the 10.2 percent. This stock:
Which one of the complying with will be constant for all securities if the market is efficient and also securities room priced fairly?
The reward-to-risk proportion for stock A is much less than the reward-to-risk ratio of share B. Stock A has actually a beta of .82 and also Stock B has actually a beta of 1.29. This details implies that:
The excess return earned by an asset that has actually a beta the 1.34 over the earned through a risk-free heritage is referred to as the:
The _____ the a security divided by the beta that that defense is equal to the slope of the security industry line if the protection is priced fairly.
Treynor sectors is investing in a brand-new project. The minimum price of return the firm needs on this job is described as the:
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