FINA 3000 POPE UGA TEST 2 QUESTIONS AND CORRECT ANSWERS

1 of 15

Term Definition



T/F: A stock with a beta of 1 has True
the same relevant risk as the
market portfolio.




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True False




2 of 15

Term Definition



T/F: if a stock has a beta greater True
than 1, it has greater systematic
risk than the avg investment

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True False




3 of 15

Term Definition



T/F: the slope of the security False
market line is beta only reject all projects if the
total NPV is negative

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True False



Correct definition



False
the x axis is beta and the slope is the required return




4 of 15

Term Definition



T/F: the coefficient of variation True
is the risk taken per unit of
return