Q1. What is the risk measure associated with the CML?
A) Standard deviation. B) Beta. C) Market risk.
Q2. Which of the following is the risk that disappears in the portfolio construction process?
A) Systematic risk. B) Unsystematic risk. C) Interest rate risk.
Q3. Based on Capital Market Theory, an investor should choose the: A) portfolio with the highest return on the Capital Market Line. B) market portfolio on the Capital Market Line. C) portfolio that maximizes his utility on the Capital Market Line.
Q4. Which of the following statements about systematic and unsystematic risk is least accurate? A) The unsystematic risk for a specific firm is similar to the unsystematic risk for other firms in the same industry. B) Total risk equals market risk plus firm-specific risk. C) As an investor increases the number of stocks in a portfolio, the systematic risk will remain constant.
Q5. In the context of the capital market line (CML), which of the following statements is TRUE?
A) The two classes of risk are market risk and systematic risk. B) Market risk can be reduced through diversification. C) Firm-specific risk can be reduced through diversification.
Q6. Which of the following is least likely considered a source of systematic risk for bonds? A) Purchasing power risk. B) Default risk. C) Market risk.
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发表于 2009-1-22 10:59
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