Fin 4200 Assessment #2
only one asset
Market risk - question and answerthe risk that remains in a portfolio after diversification
has eliminated all the company specific risk
risk averse - question and answerInvestors require greater expected returns for their
willingness to bear more risk.
risk premium - question and answerthe difference between the expected rate of return
on a given risky asset and that on a less risky asset
risk - question and answerthe chance that some unfavorable event will occur
beta coefficient - question and answerA metric that shows the extent to which a given
stock's returns move up and down with the stock market.
capital gains yield - question and answerthe capital gain of a stock during a given year,
divided by its starting price
dividend yield - question and answerthe expected dividend to be received in the next
year divided by the beginning stock price
only one asset
Market risk - question and answerthe risk that remains in a portfolio after diversification
has eliminated all the company specific risk
risk averse - question and answerInvestors require greater expected returns for their
willingness to bear more risk.
risk premium - question and answerthe difference between the expected rate of return
on a given risky asset and that on a less risky asset
risk - question and answerthe chance that some unfavorable event will occur
beta coefficient - question and answerA metric that shows the extent to which a given
stock's returns move up and down with the stock market.
capital gains yield - question and answerthe capital gain of a stock during a given year,
divided by its starting price
dividend yield - question and answerthe expected dividend to be received in the next
year divided by the beginning stock price
