The BMZ Academy @ 061 262
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, 4/1/25, 1:51 PM Assessment 2: Attempt review
IOP3708-25-S1 Welcome Message Assessment 2
QUIZ
Started on Tuesday, 1 April 2025, 12:16 PM
State Finished
Completed on Tuesday, 1 April 2025, 1:51 PM
Time taken 1 hour 34 mins
Grade 25.00 out of 25.00 (100%)
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following is not true about the element of risk?
a. Adding more and more risky assets to a portfolio diversifies away firm- specific risk.
b. The variance or standard deviation of returns for an asset is the appropriate gauge of risk because it measures
total risk, including both diversifiable, firm-specific risk, and systematic, market risk.
c. Because the returns for the risk-free asset are uncorrelated with the returns of the other assets, the return and risk
for a portfolio including the risk-free asset with any other risky asset will be linear function of the returns and risks.
d. Investors will not be compensated for taking on diversifiable risk unrelated to market movements.
Question 2
Correct
Mark 1.00 out of 1.00
Which of the following is the best example that describes an element of risk?
a. Risk attitude is important because it affects how a person values an asset.
b. According to the capital asset pricing model, investors will be compensated for taking on diversifiable risk.
c. It is clear how positive and negative emotional states translate into changes in risk attitude and, in turn, market
pricing.
d. If risk aversion changes in response to changes in mood, how much a person is willing to pay for a stock will not
change.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=25417757&cmid=1085229 1/8
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, 4/1/25, 1:51 PM Assessment 2: Attempt review
IOP3708-25-S1 Welcome Message Assessment 2
QUIZ
Started on Tuesday, 1 April 2025, 12:16 PM
State Finished
Completed on Tuesday, 1 April 2025, 1:51 PM
Time taken 1 hour 34 mins
Grade 25.00 out of 25.00 (100%)
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following is not true about the element of risk?
a. Adding more and more risky assets to a portfolio diversifies away firm- specific risk.
b. The variance or standard deviation of returns for an asset is the appropriate gauge of risk because it measures
total risk, including both diversifiable, firm-specific risk, and systematic, market risk.
c. Because the returns for the risk-free asset are uncorrelated with the returns of the other assets, the return and risk
for a portfolio including the risk-free asset with any other risky asset will be linear function of the returns and risks.
d. Investors will not be compensated for taking on diversifiable risk unrelated to market movements.
Question 2
Correct
Mark 1.00 out of 1.00
Which of the following is the best example that describes an element of risk?
a. Risk attitude is important because it affects how a person values an asset.
b. According to the capital asset pricing model, investors will be compensated for taking on diversifiable risk.
c. It is clear how positive and negative emotional states translate into changes in risk attitude and, in turn, market
pricing.
d. If risk aversion changes in response to changes in mood, how much a person is willing to pay for a stock will not
change.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=25417757&cmid=1085229 1/8
