True or false: The expected return on a security or other asset is equal to the sum of the possible returns multiplied by their probabilities. True false question. True False
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True or false: The expected return on a security or other asset is equal to the sum of the possible returns multiplied by their probabilities.
True false question.
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- Please explain why this statement is (False). If a security's realized return is negative, it must have been true that the expected return was greater than the required return.(T/F) The covariance between two assets ranges between -1.0 and 1.0. (T/F) If two risk) then their covariance must also be positive. True; False False; False True; True False; TrueThe maximum rate of return needed to induce an investor to purchase or hold a security is referred to as the investor's required rate of return. OTRUE. FALSE
- _______ is a measure of risk while _______ is a measure of risk and liquidity. NPV; IRR IRR; NPV PI; payback Payback; PIThe desired rate of return on an investment should reflect the degree of risk involved. A. True B. FalseHedging is matching the maturities of assets and liabilities to reduce risk. Hedging is matching the maturities of assets and liabilities to reduce risk. is it true or false?
- The expected return for an individual asset is the sum of expected returns in each state of the world multiplied by the probability of each state of the world occurring. Group of answer choices True False21. Which of the following statements is most accurate? If the covariance of returns between two assets is 0.0023, then: A. the assets' risk is near zero. B. the asset returns are unrelated. abia C. the asset returns have a positive relationship.A security with only diversifiable risk has an expected return that exceeds the riskfree rate of return. Begin your answer with Consistent or Inconsistent followed by your explanation.
- Present value is based on the concept of: a. discounting. b. duration. c. systematic risk. d. compounding.5. Under what circumstances will the coefficient of variation of a security's returns and the standard deviation of that security's returns give the same relative measure of risk when compared with the risk of another security?In an efficient market when asset expected returns are plotted against asset betas, then all assets would be on the security market line A. Because all assets have the same beta B. Because no assets have the same risk premium C. Because all assets have the same reward to risk ratio D. Because all assets have the same systematic risk E. Because all assets have the same average amount of systematic risk