the largest 20 percent of the stocks traded on the NYSE. the stocks of the la

the largest 20 percent of the stocks traded on the NYSE.
the stocks of the largest 10 percent of the publicly traded firms in the
U.S.
all of the stocks listed on the NYSE.
the stocks of the 500 companies included in the S&P 500 index.
It argues that efficient markets are not volatile throughout a trading
day.
It suggests that an efficient market can only consider historical information when
determining current security prices.
It proves that market inefficiencies do not exist in either the short-run or the
long-run.
It implies that all investments in an efficient market have a net present value of
zero.
multiple states of the economy
probability of occurrence for any one economic state
market rate of return given a particular economic state
security beta
11%
17%
16.60%
10%
$96000
$150000
$175000
More than $200000

The probability of a recession has increased to 30% and the probability for a normal state of economy is
now 40%. The market risk premium has increased by 1% as well. What is the standard deviation of Stock I and
II respectively?
12 and 20%
12.5 and 23%
1.25 and 2.326%
Cannot be determined with the information given
The probability of a recession has increased to 30% and the probability for a normal state of economy is
now 40%. The market risk premium has increased by 1% as well. Which statement is true? Select all that
apply:
Stock I has more overall risk than Stock II
Stock II has less systematic risk than Stock I
Stock I has a higher risk premium than Stock II
None of the above are correct statements
The expected return is usually not the same as
the actual return
A key to assessing risk is determining how much risk an
investment adds to a portfolio
Some risks cannot be decreased or mitigated by the
financial manager.
The higher the risk the higher the return investors
require for the investment