SU MBA6010 Week 4 Knowledge Check Latest 2019 JUNE

MBA6010 Managerial Finance

Week 4 Knowledge Check

Question 1 Some degree of risk is present in all investment opportunities.

Question 1 options:

True

False

Question 2 Beta measures the responsiveness of a security to movements in the market portfolio.

Question 2 options:

True

False

Question 3 The expected return on the market is the sum of the risk-free rate plus some compensation for the risk inherent in the market portfolio.

Question 3 options:

True

False

Question 4 The expected return on a security is positively (and linearly) related to the security’s beta.

Question 4 options:

True

False

Question 5 A diversified portfolio can eliminate the risk of the individual securities.

Question 5 options:

True

False