You own a stock the you think will develop a return the 11 percent in a great economy and also 3 percent in a poor economy. Offered the probabilities of every state that the economic climate occurring, friend anticipate the your stock will certainly earn 6.5 percent next year. Which one of the complying with terms uses to this 6.5 percent?- arithmetic return- historic return- expected return- geometric return- required return


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Suzie owns five different bonds valued in ~ $36,000 and also twelve various stocks valued in ~ $82,500 total. Which one of the complying with terms most uses to Suzie"s investments?- index- portfolio- collection- grouping- risk-free
Steve has invested in twelve different stocks that have a merged value this day of $121,300. Fifteen percent the that total is invested in Wise man Foods. The 15 percent is a measure up of which one of the following?- investment portfolio return- portfolio weight- level of risk- price-earnings ratio- index value
A news flash just appeared that caused around a dozen stocks to suddenly drop in worth by about 20 percent. What form of danger does this news flash represent?- portfolio- nondiversifiable- market- unsystematic- total
The rule of diversification tells united state that:- concentrating an invest in two or three large stocks will certainly eliminate all of the unsystematic risk- concentrating an investment in three service providers all within the same sector will substantially reduce the systematic risk- spreading an investment throughout five diverse companies will certainly not lower the total risk- spreading an investment across many diverse assets will certainly eliminate every one of the organized risk- spreading an investment across many diverse assets will remove some that the total risk
Which one of the adhering to measures the amount of systematic risk present in a specific risky asset family member to the organized risk current in an mean risky asset?- beta- reward-to-risk ratio- hazard ratio- conventional deviation- price-earnings ratio
Which one of the complying with is a positively sloped linear function that is created when expected returns are graphed against security betas?- reward-to-risk matrix- portfolio weight graph- regular distribution- security industry line- industry real returns
Which among the complying with is the formula that defines the relationship in between the supposed return ~ above a security and also the level of the security"s systematic risk?- capital asset pricing model- time worth of money equation- unsystematic danger equation- sector performance equation- supposed risk formula
The supposed return top top a stock offered various claims of the economic climate is same to the:- highest possible expected return given any economic state- arithmetic average of the returns for each economic state- summation the the individual expected prices of return- weighted average of the returns because that each economic state- return for the financial state through the greatest probability that occurrence
The meant risk premium on a stock is equal to the expected return on the share minus the:- expected sector rate of return- risk-free rate- inflation rate- traditional deviation- variance
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