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Gamble Expected Quiz

This type of risk is avoidable through proper diversification.

A statistical measure of the degree to which two variables (e.g., securities' returns) move together.

An "aggressive" common stock would have a "beta"

A line that describes the relationship between an individual security's returns and returns on the market portfolio.

According to the capital-asset pricing model (CAPM), a security's expected (required) return is equal to the risk-free rate plus a premium

The risk-free security has a beta equal to_______, while the market portfolio's beta is equal to .

Carrie has a "certainty equivalent" to a risky gamble's expected value that is less than the gamble's expected value. Carrie shows

Beta is the slope of

A measure of "risk per unit of expected return."

The greater the beta, the___________of the security involved.