Securities with Large Unsystematic Risks

question 39

Multiple Choice

Securities with large unsystematic risks

• A) must have large expected returns.
• B) will also have large systematic risks.
• C) do not necessarily have large expected returns.
• D) will have large Betas.

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Definitions:

Standard Deviation

Square root of the variance that represents the average deviation of a score from the mean.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to estimate properties of an underlying population.

Mean

The arithmetic average of a set of scores.

σ

A symbol commonly used in statistics to represent the standard deviation of a population.