Kyle Puts a Greater Proportion of His Portfolio into Government

question 3

Multiple Choice

Kyle puts a greater proportion of his portfolio into government bonds.Kyle's action

• A)increases both risk and the average rate of return.
• B)decreases both risk and the average rate of return.
• C)increases risk,but decreases the average rate of return.
• D)decreases risk,but increases the average rate of return.

Comprehend the significance of task and relationship behaviors in effective leadership.

Understand the practical applications and limitations of leadership theories in organizational settings.

Understand the concepts of capital gains and losses, including recognition and treatment in tax returns.

Analyze the effects of depreciation on the disposal of business assets and its impact on gain or loss.

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Definitions:

Beta

A measurement of the volatility of a security or a portfolio in comparison to the market as a whole, used as a measure of systematic risk.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for taking risk, comparing returns above the risk-free rate to the investment's market risk.

Standard Deviation

A statistical measure that represents the dispersion or variability of a data set, commonly used in finance to quantify the risk of investment returns.

Beta

A measure of a security's volatility compared to the market as a whole, indicative of its relative risk.