The systematic risk principle argues that the market does not reward risks Blank______. Multiple choice question. in any circumstances that are systematic that are borne unnecessarily that are nondiversifiable
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The systematic risk principle argues that the market does not reward risks Blank______.
in any circumstances
that are systematic
that are borne unnecessarily
that are nondiversifiable
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- Market risk cannot be eliminated. OA. True OB. FalseMarket risk ________. a. is equal to the rate of return generated by a risk-free asset b. cannot be eliminated, as it is non-diversifiable c. is synonymous with diversifiable risk d. is synonymous with financial riskWhich one of the following statements is correct concerning unsystematic risk? An investor is rewarded for assuming unsystematic risk. Beta measures the level of unsystematic risk inherent in an individual security. Eliminating unsystematic risk is the responsibility of the individual investor. Standard deviation is a measure of unsystematic risk. Unsystematic risk is rewarded when it exceeds the market level of unsystematic risk. оо O O
- A criticism of the CAPM is that it: А. utilizes too many factors. В. ignores the risk-free return C. ignores the return on the market portfolio. D. requires a single measure of systematic risk.According to the CAPM, which of the following risks is irrelevant? Select one: a. Unsystematic risk b. Systematic risk c. All risks are always relevant d. Market riskSubject :- Accouting
- If the weakest form of market efficiency holds, then security prices reflect all information found in past prices and volume. Thus, traditional "technical analysis" will not work. Group of answer choices True FalseExplain the difference between systematic and unsystematic risk. Also explain why one of these types of risks is rewarded with a risk premium while the other type is not.If there is uncertainty about monetary outcome and you are concerned about return and risk, then all you need to know are the mean and standard deviation of the possible outcomes. The emtire distribution provides no extra useful information. Do you agree or disagree? Justofy your answer and provide an example to back up your argument.
- List which of the following statement(s) concerning risk are correct? 1. Nondiversifiable risk is measured by beta. II. The risk premium increases as diversifiable risk increases. III. Systematic risk is another name for nondiversifiable risk. IV. Diversifiable risks are market risks you cannot avoid.The capital asset pricing model (CAPM) contends that there is systematic and unsystematic risk for an individual security. Which is the relevant risk variable and why is it relevant? Why is the other risk variable not relevant?Which of the following statements is NOT an explanation of Efficient Market Hypothesis violations? Failure to take account of transactions costs. Failure to deal properly with risk. Weak theoretical foundation. Inaccurate trading data.
