risk and return

What is a portfolio?

• collection of assets

• efficient market

• surprise component

Non diversifiable risk is also called

• unsystematic risk

• systematic risk

• total risk

unsystematic risk is also known as

• unique risk

• systematic risk

• market risk

Which is diversification?

• you own 50 internet stock

• you own 50 stocks that span 20 different industries

There is a minimum level of risk that cannot be diversified away and that is called

• systematic portion

• unsystematic portion

• asset specific risk

standard deviation measures:

• total risk

• systematic risk

• unsystematic risk

systematic risk is measure by

• standard deviation

• beta

• weightage

Beta of market is equal to

• 2

• 1

• 0

which is not a factor affecting expected return?

• risk free rate

• market risk premium

• beta

• growth

which model can handle more than one factor

• arbitrage pricing theory (APT)

• capital asset pricing model (CAPM)