Components of Risk & Portfolio Risk
Assess your understanding of systematic risk, unsystematic risk, portfolio return and portfolio risk. Below quiz is compiled with open source MCQs available as student resources and questions framed by us. The idea is to make online learning interesting and productive.

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No matter how large the number of stocks in the portfolio is, the risk that cannot be diversified away is the:
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An "aggressive" common stock would have a "beta"
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A negative correlation coefficient indicates that two securities:
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If the book value is greater than market value comparison with the investors for future stock are considered as
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Which of the following is not a variable in the calculation of the variance of a portfolio?
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The risk reduction of a two-asset portfolio is largest when the correlation between two assets is:
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Covariances between assets:
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A line that describes the relationship between an individual security's returns and returns on the market portfolio.
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The benefits of diversification increase as the:
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The risk of a stock in a portfolio can be expressed using the ______________instead of the covariance.
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The market portfolio has a beta of:
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The _______________ is a measure of the tendency of the returns to move together.
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This type of risk is avoidable through proper diversification.
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In securities analysis, there should be a risk-return trade off with higher risk assets having __________ expected returns than lower-risk assets.
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