Quiz Ch 05 – Determining Downside Risk Measure
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Which metric forecasts the maximum potential loss with a specified probability?
Which metric forecasts the maximum potential loss with a specified probability?
What distinguishes the rate of return on one type of asset from another?
How does an investor contrast from a gambler in terms of risk-taking?
How does squaring deviations from the mean impact the calculation of a portfolio’s variance?
What method offers the most accurate estimation of the market risk premium?
Which metrics offer the best evaluation of historical performance and individual portfolio performance?
Which metric would be the most significant when calculating historical performance given your advantageous timing in portfolio investments last year—purchasing before price increases and selling before declines?
What method can be employed to predict the risk premium?
What was the geometric average return observed for large-cap growth stocks from 1927 to 2018?
What was the geometric average return for small/value stocks over the 1927-2018 timeframe?