1. A stock with a low Beta would have a:
Regression line with a steep slope
Regression line with a high y-intercept
Regression line with a low (relatively flat) slope
Regression line with a high degree of scatter
None of the above
2. In an historical graph of stock performance, volatility is depicted by:
The intercept of the graph (left-most point)
The overall slope or trend of the graph
The ups and downs of the graph
The high of the end point (right-most point) on the graph
3. Which of these differs in meaning from the others:
Systematic risk
Company-unique risk
Market risk
Non-diversifiable risk
4. The slope of the Security Market Line is the market risk premium (Rm – Rf)
true or false?