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1Z0-1085-21

Exam Code: 1Z0-1085-21

Exam Name: Oracle Cloud Infrastructure Foundations 2021 Associate

Version: V12.35

Q & A: 135 Questions and Answers

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NEW QUESTION: 1
A measure that describes the risk of an investment project relative to other investments in general is the:
A. Standard deviation.
B. Expected return
C. Beta coefficient
D. Coefficient of variation.
Answer: C
Explanation:
The required rate of return on equity capital in the Capital Asset Pricing Model is the risk-free rate, plus the product of the market risk premium times the beta coefficient. The market risk premium is the amount above the risk-free rate that will induce investment in the market The beta coefficient of an individual share is the correlation between the volatility price variation) of the stock market and that of the price of the individual share. For example. if an individual share goes up 15% and the market only 10%. beta is 1.5.

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