Question 235 SML, NPV, CAPM, risk
The security market line (SML) shows the relationship between beta and expected return.
Investment projects that plot on the SML would have:
Diversification in a portfolio of two assets works best when the correlation between their returns is:
Which of the following investable assets is the LEAST suitable for valuation using PE multiples techniques?
Question 490 expected and historical returns, accounting ratio
Which of the following is NOT a synonym of 'required return'?
Which one of the below statements about effective rates and annualised percentage rates (APR's) is NOT correct?
What is the covariance of a variable X with a constant C?
The cov(X, C) or ##\sigma_{X,C}## equals:
Question 659 APR, effective rate, effective rate conversion, no explanation
A home loan company advertises an interest rate of 9% pa, payable monthly. Which of the following statements about the interest rate is NOT correct? All rates are given with an accuracy of 4 decimal places.
Which of the below formulas gives the profit ##(\pi)## from being long a put option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LP,0}##. Note that ##S_T##, ##X_T## and ##f_{LP,0}## are all positive numbers.
Which of the below statements about utility is NOT generally accepted by economists? Most people are thought to: