chp 11 Flashcards
1
Q
Measuring risk
A
volatility of return is what is condsisdered as risk. votality is measured by variance and standard deviation
2
Q
variance
A
the average value of squared deviations from the mean
3
Q
Standard deviation
A
square root of the variance
4
Q
unique risk
A
risk factors affecting only that frim
5
Q
Market risk
A
economy wide sources of risks that affect the overall stock market
6
Q
correlation coefficent
A
a standardized measure of comovement of the assets
7
Q
covariance
A
the degree to whih the returns on the two stocks move together
