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A line graph, probably.

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โˆ™ 2012-12-29 17:31:03
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A polynomial of degree zero is a constant term

The grouping method of factoring can still be used when only some of the terms share a common factor A True B False

The sum or difference of p and q is the of the x-term in the trinomial

A number a power of a variable or a product of the two is a monomial while a polynomial is the of monomials

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Q: What kind of graph can be used to illustrate risk and return?
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Related questions

How do you calculate risk - free return?

Risk free rate of return or risk free return is calculated as the return on government securities of the same maturity.

Relationship between risk and return?

risk is pre-stage for return...

Basic concept of risk and return?

The higher the risk, the higher the return.

What is risk return relationship?

The risk return relationship is a business concept referring to the risk involved in exchange for the amount of return gained on an investment. These two factors are directly proportional to each other, meaning the more return sought, the higher the risk that is undertaken.

Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?

Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)

What is risk of return on investments?

Risk/return ratio expresses a portfolios investment positioning; generally "Aggressive," "Growth," "Balanced," ""Conservative," and "Income," or similar. The higher the potential return, the higher the risk.

How does capital market line differ from security market line?

From The capital market line (CML) is a line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio. The CML is derived by drawing a tangent line from the intercept point on the efficient frontier to the point where the expected return equals the risk-free rate of return. The CML is considered to be superior to the efficient frontier since it takes into account the inclusion of a risk-free asset in the portfolio. The capital asset pricing model (CAPM) demonstrates that the market portfolio is essentially the efficient frontier. This is achieved visually through the security market line (SML). The security market line is a line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky marketable securities. The SML essentially graphs the results from the capital asset pricing model (CAPM) formula. The x-axis represents the risk (beta), and the y-axis represents the expected return. The market risk premium is determined from the slope of the SML. The security market line is a useful tool in determining whether an asset being considered for a portfolio offers a reasonable expected return for risk. Individual securities are plotted on the SML graph. If the security's risk versus expected return is plotted above the SML, it is undervalued because the investor can expect a greater return for the inherent risk. A security plotted below the SML is overvalued because the investor would be accepting less return for the amount of risk assumed.

How is the potential rate of return on investments related to the level of risk?

Higher risk investments have a higher potential return.

Different between the Risk and return of an investment?

risk is you not returning or saving return of investment is returning something that you invested

What does the risk return trade off mean?

additional risk is not taken unless there is an additional compensation or return is expected

In finance what is the efficient frontier?

The Efficient Frontier is a graph that shows the portfolio (combination of stocks and bonds) that would give you the highest return at each level of risk. Any point above that is unattainable without a change in risk, any point below is inefficient (that is you could receive greater return for that mix of stocks and bond then you are currently receiving).

What is the risk-free rate if the expected return is 20.4 and beta is 1.6 and expected market return is 15?

expected market return = risk free + beta*(market return - risk free) So by putting in values: 20.4 = rf+ 1.6(15-rf) expected market return = risk free + beta*(market return - risk free) So by putting in values: 20.4 = rf+ 1.6(15-rf) where rf = risk free 20.4 - 24 = rf - 1.6rf -3.6 = -0.6rf rf = 6

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