Business Administration - Financial Planning RFC225 Chapter Notes - Chapter 15: Standard Deviation, Canadian Securities Course, Market Risk
16 Oct 2017
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Document Summary
Canadian securities course chapter 15 review questions and answers. A client has approached you with the following information: You purchase stock for and hold it for 2 years. The annual dividend for this stock is . 50. If you sell the stock at the end of the 2 years for , what is the percentage return on this stock? ([1. 5 x 2] + [21 18]) / 18 = 33. 3% for both years, not annually. The following represents constraints that should be considered when designing an investment policy except: market timing. Each of the following risks can be reduced through diversification except: Systematic risk: diversification will provide the greatest benefits when two securities display: Standard deviation measures total risk, while beta is a measure of market risk. A stock with a beta of 0. 6 will have an expected return that is: Higher than risk-free rate and lower than the expected return on the market.
