The relevant measure of risk for a diversified portfolio of assets is the portfolio%u2019s level of: Answer
systematic risk unsystematic risk diversifiable risk company specific risk The linear relation between the returns on a stock and the returns on the market portfolio is called the: Answer alpha beta covariance coefficient of variance A (n) ________ portfolio maximizes return for a given level of risk or minimizes risk for a given level of return.
Answer efficient profit maximizing idiosyncratic diverse The Security Market Line describes the relationship between the: Answer expected return on securities and their
systematic risk expected return on securities and their
unsystematic risk expected return on a security and the expected
return on the market portfolio risk-free rate and the expected return on the
market portfolio The portfolio that contains all risky assets is known as the: Answer market portfolio efficient portfolio efficient frontier value-weighted