The efficient frontier measures risk by using: Group of answer choices B. Correlation A. Risk-free rates D. Standard deviation C. Beta

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Q: An ideal value-relevant attribute is one for which the correlation coefficient of the values of the…

A: +1 correlation indicates positive correlation whereas -1 indicates negative correlation.

Q: Clearly explain the difference between systematic risk and non-systematic risk and  discuss the…

A: Risk is the possibility of loss to a company due to unforeseen circumstances. Beta is the measure of…

Q: List which of the following statement(s) concerning risk are correct? I. Nondiversifiable risk is…

A: Risk is a factor which arises due to uncertain future factors. It can be generated through external…

Q: assume that every asset has the same expected return and variance. furthermore, all assets have the…

A: Variance: The value that defines how the expected rate of return is spread across from the mean…

Q: Morningstar's Risk-Adjusted Rating most closely resembles which measure? The Treynor Index Jensen's…

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Q: Which distribution can be fully described by its expected value and standard deviation? Question 1…

A: Introduction:- The expected value uses assumption to tell us what results to expect in the long run.…

Q: Calculate: - Standard Deviation - Beta  - Covariance

A: Risk means possibility that results of uncertain events will be different from the expected results.…

Q: Standard deviation is measure of total risk while BETA is measure of systematic, undiversifiable…

A: Because you have asked multiple questions, we will solve the first question as per policy. Request…

Q: calculate the standard deviation of returns.

A: Standard Deviation is the square root of the variance, which is the measurement of risk. And risk…

Q: Which of the following statements is correct?   Select one: a.   Assuming a correlation…

A: The combination of stock will reduce the overall risk of the portfolio but it it depends on the…

Q: a firm uses ther roviding for the e ayout ratio will b True False

A: The right answer is true

Q: Define the following terms: Factor risk premium Unit root Random walk with drift…

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Q: In creating the T2 measure one mixes P* and T-bills to match the _____ of the market and in creating…

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Q: I can use the regression beta as my estimate of beta in a valuation. True or false

A: Beta refers to the measurement of the volatility of stock related to the market as a whole. When…

Q: 32. An analyst calculated the excess kurtosis of information, we conclude that the distribution of…

A: When the value of excess kurtosis is negative then the distribution is called platykurtic. (Note…

Q: beta value on risk-return ratio

A: The risk-return ratio measures the return in terms of risk for a specified period of time. The…

Q: The greater the variability of the possible returns on an investment, _________. a. the lesser the…

A: Variability is a measure of how much variation each return exhibits to the mean return. It is also…

Q: A "risk-premium" is the difference between ___________________________ . A) the variance of a…

A: Solution:- Capital Asset Pricing Model (CAPM) is the equity model to determine the expected rate of…

Q: Describe the relation between Risk and Returns that was introduced by Harry Markowitz

A: Modern portfolio theory, or MPT, is referred to as the method for portfolio management for reducing…

Q: The standard deviation measures the _____ of a security's returns over time.   Multiple Choice…

A: Return refers to the exceeding value above the invested value which available for investor over…

Q: Standard deviation and beta both measure risk, but they are different in that   beta measures both…

A: Systematic risk alludes to the hazard inherent in the whole economy or part of the market. It is…

Q: Market risk is referred to as:   systematic risk. total risk. diversifiable risk. asset specific…

A: Answer 1. Market risk is referred to as? Market Risk: When an investor might lose money because of…

Q: arket's Risk premium measures Select one: a. The market return plus the risk free rate. b. The…

A: The market risk premium represents the market participants demand extra return by increasing the…

Q: Beta and standard deviation differ as risk measures in that beta measures:a. Only unsystematic risk,…

A: Beta and SD (standard deviation), both are the indicator of the risks but the only difference is…

Q: expected return and risk (measured by standard deviation) a

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Q: Use the following information to answer the question.    Based on above data, determine the…

A: Given information : Outcome  Probability  Return Recession  20% -20% Expansion 25% 15% Boom…

Q: Why do some investors prefer to use Lower Partial Standard Deviations(LPSD) as compared to the…

A: Lower Partial Standard Deviations(LPSD)-          We mentioned this idea already. However, for…

Q: With regard to dynamic risk strategies, MGRM was subject to: Group of answer choices B.…

A: Answer : D Both A&B

Q: TOTAL VS. SYSTEMATIC RISK • Consider the following information: Standard              Deviation…

A: Standard deviation is a metric which measures the dispersion or spread out between the data sets.…

Q: What does Beta measure and how is it interpreted? Explain the beta values of TSLA and JPM by…

A: In the financial market, the risk is categorized into two parts one is systematic and the second is…

Q: The regression line in a scatterplot is also known as a(n): O A. R-squared line. O B. high-low line.…

A: A regression line seems to be a line that is used to define how a set of data behaves. In other…

Q: Discuss the Beta of  as measure of systematic risk.

A: In finance systematic risk refers to that risk which is inherent to the entire market. As the risk…

Q: The measure of risk in a Markowitz efficient frontier is A) specific risk. B) standard deviation of…

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: Standard deviation measures which type of risk?

A: Standard deviation is an important measure of risk in finance.

Q: Trend projection is an example of _____________ methods of forecasting. a. Econometric b. Barometric…

A: Trend projection is an example of Time series methods of forecasting. c. Time-series is correct....

Q: The lower the standard deviation of returns on a security, the _____ the expected rate of return and…

A: The standard deviation of returns is a measure of volatility or risk.

Q: What are the two major types of tests that have been performed totest the validity of the CAPM?…

A: Two major types of tests performed for the validity of CAPM : 1. Black, Jensen and scholes test,…

Q: How are the following used on a stand-alone and a portfolio basis? 1. Standard Deviation 2.…

A: Stand-alone risk: The risks posed by a single asset, division, or project are referred to as…

Q: What is the difference between Beta and Standard Deviation as a measure of risk?

A: Risk can be divided into two categories- unsystematic risk and systematic risk. Risk is measured in…

Q: The audit risk model consists of: AR = IR x CR x DR.  The detection risk is the dependent variable.…

A: Level of Detection Risk is dependent on levels of Inherent Risk and level of Control Risk. There is…

Q: The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b.…

A: The correlation coefficient is a statistical measure.

Q: b. Why do some investors prefer to use Lower Partial Standard Deviations (LPSD) as compared to the…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: what does high value of standard deviation mean on risk-return ratio

A: Risk-return ratio is the ratio which shows the risk which an investor will get for having one unit…