Quiz Ch 07 – T/F Standard Measures for Stock Return Variability
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: Beta and covariance are the standard statistical measures of stock return variability.
True or false: Beta and covariance are the standard statistical measures of stock return variability.
True or false: Generally, stock returns tend to move together, resulting in pairs of stocks showing positive covariances and correlations.
True or false: Treasury bills generally yield higher average returns, both nominally and in real terms, compared to long-term government bonds.
True or false: Unique risk, the portion of portfolio risk that persists even with diversification, is an inherent component.
What does a standard error measure?
What does Beta assess?
How many variance terms are included in the formula for portfolio variance in a portfolio of N-stocks?