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NEW QUESTION: 1
According to the CAPM, the expected return from a risky asset is a function of:
A. the riskiness, ie the volatility of the risky asset alone
B. all of the above
C. how much the risky asset contributes to portfolio risk
D. diversifiable risk that the asset brings
Answer: C
Explanation:
Explanation
According to the CAPM, the expected return from a risky asset is a function of the contribution of the risky asset to the total risk of the market portfolio. Nothing else matters. All assets are priced according to the risk they bring to the market portfolio, regardless of their individual level of risk. An asset that is very volatile on its own, but has a negative correlation to the market may be priced high, ie have low expected return, because of its impact on the risk of the market portfolio. Therefore Choice 'a' is the correct answer, and the other options are incorrect.
Recall that according to the CAPM = covariancex, y / variancex, where x is the market portfolio and y is the risky asset.
The beta itself is a function of the covariance of the asset's returns with market returns, and therefore only the driver of expected return for an asset is its beta, which is determined by the asset's contribution to portfolio risk. ( = covariance(x, y) / variance(x), where x is the market portfolio and y is the risky asset. )
NEW QUESTION: 2
With Avaya Contact Center Select running lP500v2 with TDM trunks, what is the maximum capacity for concurrent voice agents when running call recording? (Click and drag the correct option to the space below.)
A. 0
B. 1
C. 2
D. 3
Answer: A
NEW QUESTION: 3
Ziehen Sie die Angriffsminderungstechniken von links auf die Angriffsarten, die sie rechts abschwächen.
Answer:
Explanation:
NEW QUESTION: 4
DRAG DROP
Identify the default ports used in FileMaker Server 12 (choices may be used more than once).
Answer:
Explanation:
Explanation:
C:\Pasban Work\Cert Paper Exams\FileMaker\FM0-306\FM306\FM306\7.JPG