1. The percent of return that comes from stock market movements is measured by a)beta b)correlation c)standard deviation d)correlation squared

2. The risk measure in the Security Market Line equation is a)beta b)correlation c)standard deviation d)return

3. Standard deviation is an estimate of a) total risk b)unsystematic risk c)systematic risk d)the difference between the systematic and unsystematic risk

4. Beta is an estimate of a) total risk b)unsystematic risk c)systematic risk d)the difference between the systematic and unsystematic risk

5. An investor which increases the size of required return as risk increases is a) Risk avoider b) risk neutral c) risk lover

6. Reward the increases by a constant amount as risk increases is the risk attitude of Risk avoider b) risk neutral investor c) risk lover

7. Which correctly describes a risk lover. a) Reward for risk increases at an increasing rate as risk increases b) Reward for risk decreases at an increasing rate as risk increases c) Reward for risk increases at a constant rate as risk increases

8. For mild inflation the security market line: a) Shifts upward and parallel to the pre-inflation security market line b) Shifts downward and parallel to the pre-inflation security market line c) Rotates counter-clockwise from the pre-inflation security market line d) Rotates clockwise from the pre-inflation security market line.