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    Test Bank: Risk Return Analysis

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    Satyam Dixit
    Risk and return are the basic concepts covered in financial management. Systematic risk, which affects the entire market, can be measured using beta. Diversification aims to decrease unsystematic risk by reducing the variability of returns through investing in multiple assets.

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    Test Bank: Risk Return Analysis

    Uploaded by

    Satyam Dixit
    3K views2 pages
    Risk and return are the basic concepts covered in financial management. Systematic risk, which affects the entire market, can be measured using beta. Diversification aims to decrease unsystematic risk by reducing the variability of returns through investing in multiple assets.

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    Test Bank Risk

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    Risk and return are the basic concepts covered in financial management. Systematic risk, which affects the entire market, can be measured using beta. Diversification aims to decrease unsystematic risk by reducing the variability of returns through investing in multiple assets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    3K views2 pages

    Test Bank: Risk Return Analysis

    Uploaded by

    Satyam Dixit
    Risk and return are the basic concepts covered in financial management. Systematic risk, which affects the entire market, can be measured using beta. Diversification aims to decrease unsystematic risk by reducing the variability of returns through investing in multiple assets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    TEST BANK: Risk Return Analysis

    1. Which of the two are the basic concepts of FM : Cost and expenses Risk and return Debit and credit Receipts and payments 2. In FM risk refers to : Chances of incurring losses Variability of future returns Chances of no returns none 3. Beta of risk free securities is : Zero 1 -1 None 4. Standard deviation can be used to measure : Risk Return Both risk and return None 5. Which of the following is true : Higher the beta, lower the risk Higher the beta , higher the risk Risk is constant Beta is constant 6. Basic objective of diversification is : Increasing return Increasing risk Decreasing risk Maximizing return 7. Systematic risk can be measured by : Coefficient of variation Standard deviation Beta Range 8. Which of the following is unsystematic risk to a firm:

    Inflation Surcharge of income tax Interest rate Scarcity of raw material 9. CAPM provides a framework for measuring risk. Identify the correct risk: Portfolio risk Market risk Systematic risk None

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