Sources of risk include
1) fluctuations in stock prices
2) inflation
3) possibility of bankruptcy
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) all three
Correct Answer:
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Q17: Stocks with low beta coefficients have higher
Q18: The larger an investment's standard deviation, the
Q19: The risk premium in the capital asset
Q20: There is no risk in a world
Q21: Systematic risk
1) is the tendency for a
Q23: A diversified portfolio reduces
A) unsystematic risk
B) systematic
Q24: The standard deviation measures
A) the dispersion around
Q25: You bought a stock with a beta
Q26: An investor may reduce risk by selecting
A)
Q27: A beta coefficient is a measure of
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