Q1)VaR can be defined as the minimal loss of a financial position during a given time period for a given probability. true or fslse Q2 Stocks tend to move together if they are affected by ________. common economic events events unrelated to the economy idiosyncratic shocks unsystematic risk Q3)Beta can be viewed as a measure of systematic risk TRUE OR FASE
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Q1)VaR can be defined as the minimal loss of a financial position during a given time period for a given probability.
true or fslse
Q2 Stocks tend to move together if they are affected by ________.
|
common economic events |
|
events unrelated to the economy |
|
idiosyncratic shocks |
|
unsystematic risk |
Q3)Beta can be viewed as a measure of systematic risk
TRUE OR FASE
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