Apply Portfolio Analysis Concepts
Series 7 · Flashcards · Application
SERIES 7 · FLASHCARDS
Card 1
of 4
0 got it
0 to review
Current
Got it
Still learning
Not seen
QUESTION
Identify the higher-volatility investment if
σ
A
=
12
%
\sigma_A=12\%
σ
A
=
12%
and
σ
B
=
18
%
\sigma_B=18\%
σ
B
=
18%
.
QUESTION
What does a beta of
1.2
1.2
1.2
indicate about a stock's market risk?
QUESTION
Calculate
R
p
R_p
R
p
if
50
%
50\%
50%
earns
10
%
10\%
10%
and
50
%
50\%
50%
earns
−
2
%
-2\%
−
2%
in the same period.
Tap to flip before you grade
ANSWER
4
%
4\%
4%
. Portfolio return is computed as the weighted average of the realized returns from its constituent investments.
Swipe → got it · swipe ← still learning
Got it
Still learning
Flip Card
Previous card
Next card