Multiple Choice
For log normally distributed returns, annual compound returns equal
A) the arithmetic average return minus half the variance.
B) the arithmetic average return plus half the variance.
C) the arithmetic average return minus half the standard deviation.
D) the arithmetic average return plus half the standard deviation.
Correct Answer:
Verified
Correct Answer:
Verified
Q77: Macro Corporation has had the following returns
Q78: The annual returns for three years for
Q79: Which portfolio has had the highest average
Q80: Unique risk is also called<br>A)systematic risk.<br>B)non-diversifiable risk.<br>C)firm-specific
Q81: For each additional 1 percent change in
Q83: Low standard deviation stocks always have low
Q84: If the covariance between stock A and
Q85: Define the term risk premium.
Q86: For long-term U.S. government bonds, which risk
Q87: What has been the average annual rate