CHAPTER 21 QUIZ 6 TO 10
6. The essence of the capital market line is that the only way to earn greater returns is to take increasingly greater risks.
7. If a particular stock is less risky than the market, its beta coefficient will fall somewhere between -1 and 0.
8. Unsystematic risk earns a risk premium because it cannot be offset through efficient portfolio management.
9. Unlike the capital market line, the security market line is unique for each investor.
10. Risk is generally associated only with loss from possible investments.