Unsystematic risk is the amount of return volatility

Assignment Help Financial Management
Reference no: EM132021989

1. The first portfolio task faced by any individual is to set up an overall framework for the investment of their portfolio. This framework is built around their own personal investment profile, taking into consideration their return needs and their tolerance for risk. Another term for this is _____.

a. screening

b. stock selection

c. value investing

d. asset allocation

2. Unsystematic risk is the amount of return volatility that is specific to __________.

a. Beta

b. the individual firm

c. inflation

d. the market

3. The __________ return is upward biased and should not be used to estimate expected accumulated wealth over time.

a. lowest quartile

b. risk-free

c. arithmetic average

d. geometric average

Reference no: EM132021989

Questions Cloud

Sample standard deviation of returns for stock : Calculate the sample standard deviation of returns for a stock with annual returns of 62.7%, 88.1%, -3.8%, 18.0%, and -42.2%. The value is closest to
Considering investing in four-year bond : Suppose that you are considering investing in a four-year bond that has a face value of $1000 and a coupon rate of 5.5 %.
Systematic risk is measure of return volatility : Systematic risk is a measure of return volatility in an individual stock that is specific to __________.
What is the price of the six-month forward contract : Tesco plans to pay a $2 dividend per share in 3 months and a $3 dividend in 6 months. What is the price of the 6-month forward contract?
Unsystematic risk is the amount of return volatility : Unsystematic risk is the amount of return volatility that is specific to __________.
What is the fund net asset value : Johnson fund has an offer price of $75 and sells at a 4% discount. What is the fund's net asset value?
Portfolio comprised of two securities : You own a portfolio comprised of two securities, A and B. The weights of A and B in the expected minimum variance portfolio are closest to:
Security analyst at left-handed brothers securities : Lisa Simpson is a security analyst at Left-handed Brothers Securities and has developed the following estimates for Doh!
What is the profit on your arbitrage strategy : What arbitrage would you undertake? What is the profit on your arbitrage strategy?

Reviews

Write a Review

Financial Management Questions & Answers

  Evaluation of performance of business

The evaluation of performance of business units in either Tesco or Carrefour using financial and non-financial measures.

  Compute the rate of return on stockholders equity

Compute the Rate of return on stockholders' equity, Price/earnings ratio for common stock and Dividends paid per share of common stock for 2011.

  Expenses over an infinite planning horizon

Determine what minimum toll should be charged to each car and truck to cover all expenses over an infinite planning horizon.

  What is company cost of preferred stock

Bosio inc's perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would have a flotation cost of 4.00% of the price paid by investors. What is the company's c..

  Dividend policy and the issue of new shares of common stock

Your firm needs to raise $10 million to finance its capital expenditures for the coming year. How much common stock will the firm have to issue?

  Identify corner portfolio likely to be tangency portfolio

Identify the corner portfolio most likely to be tangency portfolio and explain its appropriateness for UALR in selecting an optimal strategic asset allocation.

  Discuss various capital budgeting methods most often used

Let's discuss the various capital budgeting methods most often used. One simple one is the the payback period;

  What is its self-supporting growth rate

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,400,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  What are the initial bid and ask quotes

The market is cleared by a risk neutral competitive market maker quoting prices at which the trading takes place. What are the initial bid and ask quotes?

  Assuming the loan is based on ordinary interest

Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?

  Target capital structure

For a company whose target capital structure calls for 50% debt and 50% common equity, which of the following statements is CORRECT

  Change in the bonds price in dollars and percentage terms

A $2,100 face value corporate bond with a 6.0 percent coupon (paid semiannually) has 15 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 6.5 percent. What will be the change in the bond’s price in dollars and perce..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd