1. Which of these is the measurement of risk for a collection of stocks for an i

ID: 2736285 • Letter: 1

Question

1. Which of these is the measurement of risk for a collection of stocks for an investor?

A. beta

B. portfolio beta

C. efficient market

D. expected return

2. Which of the following is NOT a necessary condition for an efficient market?

A. Many buyers and sellers.

B. No trading or transaction costs.

C. No prohibitively high barriers to entry.

D. Free and readily available information available to all participants.

3. Investing in stocks is like gambling when:

A. Both have a short time horizon

B. Both involve risk

C. Both involve an initial outflow of cash

D. Both result in long-term loses.

Answer 1- A. Beta is the measurement of risk for a collection of stocks for an investor.

Answer 2- D. Free and readily available information available to all participants is NOT a necessary condition for an efficient market.

Answer 3- A Investing in stocks is like gambling when Both have a short time horizon.

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