The alpha coefficient is a measure of:

I stock specific risk

II market risk

III a stock's price relative to the market as a whole

IV a stock's price relative to a specific industry

Answer: 

I stock specific risk

IV a stock's price relative to a specific industry

Common shares of which of the following issuers are likely to have a Beta coefficient much lower than +1?

A. Tool and die maker

B. Pharmaceutical manufacturer

C. Public utility

D. Electronics manufacturer

Answer: C

Which of the investments listed below offers the greatest protection against market risk?

A. Common Stocks

B. Treasury Bills

C. Preferred Stocks

D. Treasury Bonds

Answer: B

The risk inherent in a portfolio that can be diversified away is known as:

Answer: non-systematic risk

The Capital Asset Pricing Model (CAPM) would identify the most efficient investments as those with the:

Answer: highest return for the lowest level of risk assumed

"CAPM" stands for:

Answer: Capital Asset Pricing Model