The excess return earned by an asset that ha...The overfill return deserve by an asset that has actually a beta that 1.34 over the earned through a risk-free legacy is described as the:market danger premium.risk premium.systematic return.total return.real rate of return.

You are watching: The intercept point of the security market line is the rate of return which corresponds to:


The _____ tells us that the meant return on a risky heritage depends only on the asset"s nondiversifiable risk.efficient sectors hypothesissystematic danger principleopen industries theoremlaw the one priceprinciple of diversification
The supposed return ~ above a portfolio considers i beg your pardon of the complying with factors?I. Percent of the portfolio invest in every individual securityII. Projected claims of the economyIII. The power of every security provided various economic statesIV. Probability of event for every state of the economyI and III onlyII and also IV onlyI, III, and also IV onlyII, III, and also IV onlyI, II, III, and IV
The typical deviation the a portfolio:is a measure up of that portfolio"s organized risk.is a weighed median of the traditional deviations that the separation, personal, instance securities hosted in the portfolio.measures the lot of diversifiable risk inherent in the portfolio.serves together the communication for computing the suitable risk premium for that portfolio.can be less than the weighted median of the standard deviations the the separation, personal, instance securities held in that portfolio.
Which among the adhering to statements concerned unexpected returns is correct?All announcements through a firm influence that firm"s unforeseen returns.Unexpected returns end time have actually a negative effect ~ above the complete return of a firm.Unexpected return are fairly predictable in the short-term.Unexpected return generally reason the actual return to vary considerably from the expected return end the long-term.Unexpected returns can be either positive or an unfavorable in the quick term however tend to it is in zero end the long-term.
Unexpected returns have the right to be either hopeful or an adverse in the brief term however tend to it is in zero end the long-term.
Which among the adhering to is an example of unsystematic risk?income taxes are increased across the boarda national sales taxation is adoptedinflation decreases in ~ the nationwide levelan raised feeling the prosperity is felt approximately the globeconsumer safety on entertainment decreased nationally
Which among the complying with is the finest example the a diversifiable risk?interest prices increaseenergy expenses increasecore inflation increasesa firm"s sales decreasetaxes decrease
The intercept suggest of the security market line is the price of return which coincides to:the risk-free rate.the market rate.a return the zero.a return that 1.0 percent.the sector risk premium.
A stock through an really return the lies above the security market line has:more systematic risk than the overall market.more threat than that warranted by CAPM.a greater return than meant for the level of threat assumed.less organized risk 보다 the overall market.a return identical to the level of risk assumed.

See more: Business Ethics Are Consistent Only With Short-Run Profit Maximization.


The expected price of return top top a stock portfolio is a weighted typical where the weights are based on the:number of shares owned of every stock.market price every share of each stock.market value of the invest in every stock.original amount invest in each stock.cost per share of each stock held.
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