Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Join our Q&A platform to get precise answers from experts in diverse fields and enhance your understanding. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Now we will focus on Risk in a Portfolio Context.
Match each of the terms below with their definitions and descriptions
A. Beta remaining after diversification
B. Correlation This represents the weighted average of the expected returns on individual components
C. Expected Return on a Portfolio The tendancy of two variables to move together
D. A portfolio consisting of all stocks The degree of the relationship between two variables
E. Capital Asset Pricing Model
F. Market Risk Premium Market Portfolio
G. Correlation Coeficient
This equation represents the return that reflects the risk
The S&P 500 often is used to empirically measure this variable
The variable that shows the extent to which a stock's returns move up or down with the market Measures Market Risk
The return above and beyond the risk free rate needed to compensate invesotrs for taking extra risk by investing in stocks
The difference between the market rate of return and the risk free rate - -

Sagot :

Emela

Answer:

See explanation below

Explanation:

Correlation Coefficient - The degree of the relationship between two variables.

Correlation - The tendency of two variables to move together.

Capital Asset Pricing Model - This represent the return that reflects risk remaining after diversification.

Market Portfolio - A portfolio consisting of all stocks.

Expected Return on a Portfolio - This represents the weighted average of the expected returns on individual components.

Market Risk Premium - The difference between the market rate of return and the risk free rate

Beta - The variable that shows the extent to which a stock’s return moves up or down with the market.

S&P 500 is empirically used to measure Beta

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.