The risk of individual stock is measured

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Reference no: EM132003414

1. The risk of an individual stock is measured by:

1. its standard deviation.

2. its beta

3. earnings per share

4. the P/E ratio

5. none of the above

2. Consider an investment opportunity set formed with two securities that are perfectly negatively correlated. If the securities had a correlation of -1, what would be the risk of the portfolio?

1. greater than zero.

2. equal to zero.

3. equal to the sum of the securities' standard deviations.

4. equal to -1.

5. none of the above.

3. When the market price breaks through (moves above) a moving average line from below, this is normally taken as a __________ signal

1. bullish signal

2. bearish signal

3. bullish or bearish, depending on the relative strength of the market

4. none of the above

5. answer 1 and answer c only

Reference no: EM132003414

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