Home > Analysis > Intermediate
Analysis Intermediate: Evaluating Risk

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
If you are willing to accept heavy losses in your portfolio to gain high returns later on, you are risk-averse.
Choose wisely. There is only one correct answer.
False. If you are willing to accept heavy losses in your portfolio to gain high returns later on, you have a high tolerance for risk.
2.
In the CAPM formula, Rf stands for _______.
Choose wisely. There is only one correct answer.
Risk-free return. In the CAPM formula, Rf stands for risk-free return.
3.
The coefficient of variation divides a securitys price mean by its standard deviation.
Choose wisely. There is only one correct answer.
False. The coefficient of variation divides a securitys standard deviation by its price mean.
4.
If a security has a high standard deviation, its volatility is low.
Choose wisely. There is only one correct answer.
False. If a security has a high standard deviation, its volatility is high.
5.
If a security is more volatile than the market, it has a beta _______.
Choose wisely. There is only one correct answer.
Greater than 1. A beta greater than 1 indicates that a stock is more volatile than the overall market.