1) For investors, the proper measure of a stock's risk is its __________.
A. nondiversifiable risk 
B. specific risk 
C. nonsystematic risk 
D. standard deviation 

 

2) A company’s beta is -1.5. If the overall stock market decreases by 5%, what is the expected change in the firm's stock price?
A. Share price decreases by 5% 
B. Share price decreases by 6.5% 
C. Share price increases by 7.5% 
D. Share price decreases by 7.5% 

 

3) Which of these investments would you expect to have the highest rate of return for the next 20 years?
A. U.S. Treasury bills 
B. Long-term corporate bonds 
C. Intermediate-term U.S. government bonds 
D. Money market funds 

 

4) Dimensions of risk include __________.
A. uncertainty about the future outcome 
B. the certainty of a negative outcome 
C. the impossibility of the same return 
D. uncertainty about yesterday’s outcome 

    • 8 years ago
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