Change to a Percent Equivalent to the Nearest Thousandth $\frac { 2 } { 7 }$

question 88

Multiple Choice

Change to a percent equivalent to the nearest thousandth. $\frac { 2 } { 7 }$

• A)0.286%
• B)0.003%
• C)28.571%
• D)3.5%

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Definitions:

Market Risk Premium

The extra return expected by investors for taking on the risk of investing in the stock market over a risk-free rate.

Security Market Line

A line representing the relationship between the expected return of a market security and its risk, as measured by beta.

Systematic Risk

The collective risk for all investments in a market or a specific part of the market that cannot be offset through diversification.

Unsystematic Risk

The danger linked to a certain company or sector that can be reduced by spreading investments across a varied portfolio.