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
- Which of the following statements is true for compensation of risk? a. Higher the risk, lower is the return b. Lower the risk, higher is the return c. Higher the risk, higher is the return d. Higher the risk, zero is the returnA_ what is return. Define risk and explain how it is assessed_______ is a measure of risk while _______ is a measure of risk and liquidity. NPV; IRR IRR; NPV PI; payback Payback; PI
- The desired rate of return on an investment should reflect the degree of risk involved. A. True B. FalseGive typing answer with explanation and conclusion Please could you anwser it with true or false : Q1)Risk-neutral evaluation assumes that the expected return on the underlying asset is the risk-free rate and discounts at the risk-free rate.Hedging 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?
