Chance of occurrence of any event is classified as_____________?

A: Probability

B: Risk

C: Chance

D: Event happening

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Probability

Tendency of moving together of two variables is classified as_____________?

A: Correlation

B: Move tendency

C: Variables tendency

D: Double tendency

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Correlation

Relationship between risk and required return is classified as___________?

A: Security market line

B: Required return line

C: Market risk line

D: Riskier return line

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Security market line

External factors such as expiration of basic patents and industry competition effect____________?

A: Patents premium

B: Competition premium

C: Companys beta

D: Expiry premium

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Company’s beta

Beta coefficient is used to measure market risk which is an index of__________?

A: Coefficient risk volatility

B: Market risk volatility

C: Stock market volatility

D: Portfolio market portfolio

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Stock market volatility

A portfolio consists of all stocks in a market is classified as____________?

A: Market portfolio

B: Return portfolio

C: Correlated portfolio

D: Diversified portfolio

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Market portfolio

Risk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as____________?

A: Stock risk

B: Portfolio risk

C: Diversifiable risk

D: Market risk

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Diversifiable risk

In capital asset pricing model, stock with high standard deviation tend to have________?

A: Low variation

B: Low beta

C: High beta

D: High variation

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Low beta

Standard deviation is divided by expected rate of return is used to calculate_________?

A: Coefficient of variation

B: Coefficient of deviation

C: Coefficient of standard

D: Coefficient of return

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Coefficient of variation

A tighter probability distribution shows the___________?

A: Higher risk

B: Lower risk

C: Expected risk

D: Peaked risk

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Lower risk

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