Which of the following statements is the most accurate concerning security returns over The eight decades since the 1920's?

Related MCQs

• Which of the following statement(s) is/are true? I. A unique characteristic line is plotted for each security to determine the beta. II. For a characteristic line, the X-axis represents betas for different securities. III. The slope of the characteristic line is the difference between the market returns andrisk-free returns.
• When ranking security returns, the data shows that the annualized returns are as follows, ranked from highest return to lowest return.
• Which of the following is/are disadvantage(s) of indexing of bond portfolio? I. Advisory fee schedule is high II. In past, returns earned by most active fund managers has much exceeded those of index portfolio III. Loss of opportunity for incremental returns.
• Stock returns are generally expected to be independent across weekdays, but a number of studies have found returns on Monday to be lower than in the rest of the week. This departure from market efficiency is also sometimes called the _____ effect.
• The beta of an active portfolio is 1.20. The standard deviation of the returns on the market index is 20%. The nonsystematic variance of the active portfolio is 1%. The standard deviation of the returns on the active portfolio is __________.
• Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security.
• When ranking the riskiness of securities using the standard deviation, the highest risk security to the lowest risk security is as follows:
• According to security market line, the expected return of any security is a function of:
• You invest 55% of your money in security A with a beta of 1.4 and the rest of your money in security B with a beta of 0.9. The beta of the resulting portfolio is
• A company's __________ provide the most accurate information to its management and shareholders about its operations.