İŞLETME FİNANSI I
2.Risk levels
3.Possible interactions/co-movements with other securities
4.Trends
Which of the above should we take into account when deciding on an investment?
2. Unsystematic risk is the uncertainty that isrelated to the invested asset
3. On average unexpected returns should be positive
4. Unexpected returns can be broken down into a systematic risk and unsystematic risk components
Which of the statements are true?
2. The correlation lies between -0.5 and +0.5
3. The diversification benefit would be eliminated at +1 correlation
4. The maximum diversification benefit would be reached at -0.5
Which of the above statements are true?
2. The risk free return is usually approximated with the returns from very short-term government securities
3. The risk-free asset has variability in zero variance and zero correlation and covariance with any asset
4. The Capital Market Line (CML) is the line that connects the risk-free asset with the risk free rate
Which of the above statements are true?
Which of the word pairs below does correctly fill the blanks in the sentence given above?