A longer investment horizon  ..…  the probability of losing part if the original investment.

The 5% value at risk (VaR(0.05)) of an assets with a market value of 100, a mean return of zero and a return standard deviation of one is  ..…  .

The CAPM shows that a risk premium is the reward for taking  ..…  .

The beta (β) coefficient of the market portfolio is  ..…  .

The following information are available for stock B and the market portfolio:

ρ_i,M  ... Correlation between stock i and the market portfolio.

The risk free rate is 4% p.a.

Task: According to the CAPM the expected return of stock B should be 8 % p.a. Is in this case stock B undervalued or overvalued according to the CAPM?

Common shares have in general a  ..…  regarding dividend payments compared to preference shares.

Higher risk aversion is associated with  ..…  (utility) indifference curves.

The most common share types are  ..…  .

On May 26^th, 20xx (ex-date), SolarWord AG paid a dividend of €4 per share. SolarWorlds stock price for the sub-period:

Task: Calculate the Buy and Hold Return for the period May 25 to May 29, in %, with 3 decimal places (like, e.g., 7.123 (English TUWEL version) or 7,123 (German TUWEL version)), without %-sign.

Lower risk aversion in the market leads to  ..…  .