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Questions and Answers
The US Federal Reserve decides to increase rates of borrowing, which could increase the
US 10-year yield. The technology sector could be affected negatively with this development.
This is an example of:
The US Federal Reserve decides to increase rates of borrowing, which could increase the US 10-year yield. The technology sector could be affected negatively with this development. This is an example of:
- Systematic Risk
- Unsystematic Risk (correct)
- Toxic Risk
- None of the Above
The outbreak of COVID-19 in the word. This is an example of:
The outbreak of COVID-19 in the word. This is an example of:
- Systematic Risk (correct)
- Unsystematic Risk
- Toxic Risk
- None of the Above
Unsystematic risk can be minimised by investing in a number of unrelated lines of
business. This is an example of:
Unsystematic risk can be minimised by investing in a number of unrelated lines of business. This is an example of:
- Diversification at Investor Level (correct)
- Aggressive Growth Strategy
- Diversification at Firm Level
- None of the Above
Which one of the following statements is NOT correct?
Which one of the following statements is NOT correct?
. If the standard deviation of Alpha Plc is 3.67%, the standard deviation of Hio Inc is 5.78%,
and the correlation coefficient between Alpha and Hio is -0.455, the standard deviation of a
portfolio containing Alpha and Hio is (assume a 40% weightage on Alpha and 60% weightage on Hio):
. If the standard deviation of Alpha Plc is 3.67%, the standard deviation of Hio Inc is 5.78%, and the correlation coefficient between Alpha and Hio is -0.455, the standard deviation of a portfolio containing Alpha and Hio is (assume a 40% weightage on Alpha and 60% weightage on Hio):
A perfect correlation results in a correlation coefficient equal to:
A perfect correlation results in a correlation coefficient equal to:
Hypothetically, to combine an infinite number of securities, the_______ would disappear
Hypothetically, to combine an infinite number of securities, the_______ would disappear
