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.
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.
2.
A steep standard deviation curve means that _______.
Choose wisely. There is only one correct answer.
A securitys deviation is low. When the curve is steep, the deviation is small compared to the height of the curve.
3.
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.
4.
A security with a high coefficient of variation is highly volatile.
Choose wisely. There is only one correct answer.
True. A security with a high coefficient of variation is highly volatile.
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.