One of the Easiest Ways to Assess Whether You Are

question 43

Multiple Choice

One of the easiest ways to assess whether you are at a healthy weight is to

• A) compare yourself to your friends.
• B) look in the mirror.
• C) weigh yourself.
• D) calculate your BMI.

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Definitions:

Nonsystematic Standard Deviation

A measure of the dispersion of returns on an investment due to factors specific to an individual asset or company, not the market.

Equally-Weighted Portfolio

An investment portfolio in which each asset is invested in with an equal amount of capital, providing diversification and reducing risk.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Security Market Line

A line drawn on a graph that shows the relationship between risk and the expected return of the market, used in the capital asset pricing model to determine a security's risk premium.