Question 1

A growth stock portfolio and a value portfolio might be characterized

Accepted Answer

A)  each by their P/E relative to the index P/E; high P/E for growth and lower for value. 
B)  as earning a high rate of return for a growth security and a low rate of return for value security irrespective of risk. 
C)  low unsystematic risk and high systematic risk respectively. 
D)  moderate systematic risk and zero systematic risk respectively. 
A)  each by their P/E relative to the index P/E; high P/E for growth and lower for value. 
B)  as earning a high rate of return for a growth security and a low rate of return for value security irrespective of risk. 
C)  low unsystematic risk and high systematic risk respectively. 
D)  moderate systematic risk and zero systematic risk respectively.

Question 2

In the equation R =   + U, the three symbols stand for:

Accepted Answer

A)  average return, expected return, and unexpected return. 
B)  required return, expected return, and unbiased return. 
C)  actual return, expected return, and unexpected return. 
D)  required return, expected return, and unbiased risk. 
E)  risk, expected return, and unsystematic risk.
Blooms: Understand
Difficulty: Easy
Topic: 12-01 Factor Models: Announcements, Surprises, and Expected Returns 
A)  average return, expected return, and unexpected return. 
B)  required return, expected return, and unbiased return. 
C)  actual return, expected return, and unexpected return. 
D)  required return, expected return, and unbiased risk. 
E)  risk, expected return, and unsystematic risk.
Blooms: Understand
Difficulty: Easy
Topic: 12-01 Factor Models: Announcements, Surprises, and Expected Returns

A growth stock portfolio and a value portfolio might be characterized

In the equation R = + U, the three symbols stand for:

Introduction to Corporate Finance

Accounting Statements and Cash Flow

Financial Planning and Growth

Financial Markets and Net Present Value: First Principles of Finance

The Time Value of Money

How to Value Bonds and Stocks

Net Present Value and Other Investment Rules

Net Present Value and Capital Budgeting

Risk Analysis, Real Options, and Capital Budgeting

Risk and Return: Lessons From Market History

Risk and Return: the Capital Asset Pricing Model

Risk, Return, and Capital Budgeting

Corporate Financing Decisions and Efficient Capital Markets

Long-Term Financing: an Introduction

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Valuation and Capital Budgeting for the Levered Firm

Dividends and Other Payouts

Issuing Equity Securities to the Public

Long-Term Debt

Leasing

Options and Corporate Finance: Basic Concepts

Options and Corporate Finance: Extensions and Applications

Warrants and Convertibles

Derivatives and Hedging Risk

Short-Term Finance and Planning

Cash Management

Credit Management

Mergers and Acquisitions

Financial Distress

International Corporate Finance

Filters

Exam 12: An Alternative View of Risk and Return: the Arbitrage Pricing Theory

A growth stock portfolio and a value portfolio might be characterized

In the equation R = + U, the three symbols stand for:

Introduction to Corporate Finance

Accounting Statements and Cash Flow

Financial Planning and Growth

Financial Markets and Net Present Value: First Principles of Finance

The Time Value of Money

How to Value Bonds and Stocks

Net Present Value and Other Investment Rules

Net Present Value and Capital Budgeting

Risk Analysis, Real Options, and Capital Budgeting

Risk and Return: Lessons From Market History

Risk and Return: the Capital Asset Pricing Model

Risk, Return, and Capital Budgeting

Corporate Financing Decisions and Efficient Capital Markets

Long-Term Financing: an Introduction

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Valuation and Capital Budgeting for the Levered Firm

Dividends and Other Payouts

Issuing Equity Securities to the Public

Long-Term Debt

Leasing

Options and Corporate Finance: Basic Concepts

Options and Corporate Finance: Extensions and Applications

Warrants and Convertibles

Derivatives and Hedging Risk

Short-Term Finance and Planning

Cash Management

Credit Management

Mergers and Acquisitions

Financial Distress

International Corporate Finance

Filters