2420888
Descrição
FlashCards por dylan_earl, atualizado more than 1 year ago
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Criado por dylan_earl
mais de 9 anos atrás
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| Questão | Responda |
| Measuring % Rate of Return | Capital Gain + Dividend / Initial Share Price |
| Formula for Capital Gain Yield | Capital Gain/Initial Share Price |
| Formula for Dividend Yield | Dividend / Initial Share Price |
| What is a Market Index | Measure of the investment performance of the overall market |
| Rate of return on a security calculation | Rate of Return on T-Bill + Market Risk Premium |
| Volatility of returns is what is considered as safety T/F | False Considered as RISK |
| Stocks have highest average rate of return and highest level of volatility T/F | True |
| What is Unique Risk? | Risk factors affecting only that firm (Also called Diversifiable or non systematic) |
| Define Market Risk | Economy-Wide sources of risk that affect the overall stock market. |
| How does Diversification reduce risk? | Assets in the portfolio do not move in exact harmony with each other so if one does bad, another probably does well. |
| What does reduction in risk of portfolio depend on? | Correlation Coefficient between assets (Value is between +1 and -1) |
| Define Covariance | Degree to which the returns on two stocks are related |
| What is portfolio risk | Risk of a portfolio depends on the weights assigned to the assets, individual risks and the correlation coefficients between them |
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