Question 1

-Given Exhibit 7-2, what is the expected variance?

Accepted Answer

A)  943.19% 
B)  1058.69% 
C)  49.27% 
D)  32.54% 
A)  943.19% 
B)  1058.69% 
C)  49.27% 
D)  32.54% A

Question 2

An investor has $10,000 invested in Treasury securities and $15,000 invested in stock UVW. UVW has a beta of 1.2. What is the beta of the portfolio?

Accepted Answer

A)  0.00 
B)  0.72 
C)  1.20 
D)  1.60 
A)  0.00 
B)  0.72 
C)  1.20 
D)  1.60 B

Question 3

-Given Exhibit 7-6, what is the portfolio beta?

Accepted Answer

A)  0.4987 
B)  0.9273 
C)  0.3791 
D)  1.2367 
A)  0.4987 
B)  0.9273 
C)  0.3791 
D)  1.2367 B

Question 4

-Given Exhibit 7-1, what is the expected return?

Accepted Answer

A)  13.00% 
B)  15.96% 
C)  16.00% 
D)  17.75% 
A)  13.00% 
B)  15.96% 
C)  16.00% 
D)  17.75%

Question 5

-Given Exhibit 7-1, what is the expected standard deviation?

Accepted Answer

A)  957.38% 
B)  1058.69% 
C)  49.27% 
D)  32.54% 
A)  957.38% 
B)  1058.69% 
C)  49.27% 
D)  32.54%

Question 6

‪  
-Given Exhibit 7-7, what is the portfolio beta?

Accepted Answer

A)  0.4987 
B)  0.9273 
C)  0.3791 
D)  1.2667 
A)  0.4987 
B)  0.9273 
C)  0.3791 
D)  1.2667

Question 7

-Given Exhibit 7-3, what is the expected return on the portfolio?

Accepted Answer

A)  14.1% 
B)  15.0% 
C)  16.3% 
D)  17.9% 
A)  14.1% 
B)  15.0% 
C)  16.3% 
D)  17.9%

Question 8

-Given Exhibit 7-2, what is the expected standard deviation?

Accepted Answer

A)  957.38% 
B)  1058.69% 
C)  30.71% 
D)  32.54% 
A)  957.38% 
B)  1058.69% 
C)  30.71% 
D)  32.54%

Question 9

-Given Exhibit 7-1, what is the expected variance?

Accepted Answer

A)  957.38% 
B)  1058.69% 
C)  49.27% 
D)  32.54% 
A)  957.38% 
B)  1058.69% 
C)  49.27% 
D)  32.54%

Question 10

The beta of the risk-free asset is:

Accepted Answer

A)  -1.0 
B)  0.0 
C)  0.5 
D)  1.0 
A)  -1.0 
B)  0.0 
C)  0.5 
D)  1.0

Question 11

If the market portfolio has an expected return of 0.12 and a standard deviation of 0.40, and the risk-free rate is 0.04, what is the slope of the security market line?

Accepted Answer

A)  0.08 
B)  0.20 
C)  0.04 
D)  0.12 
A)  0.08 
B)  0.20 
C)  0.04 
D)  0.12

-Given Exhibit 7-2, what is the expected variance?

An investor has $10,000 invested in Treasury securities and $15,000 invested in stock UVW. UVW has a beta of 1.2. What is the beta of the portfolio?

-Given Exhibit 7-6, what is the portfolio beta?

-Given Exhibit 7-1, what is the expected return?

-Given Exhibit 7-1, what is the expected standard deviation?

‪ -Given Exhibit 7-7, what is the portfolio beta?

-Given Exhibit 7-3, what is the expected return on the portfolio?

-Given Exhibit 7-2, what is the expected standard deviation?

-Given Exhibit 7-1, what is the expected variance?

The beta of the risk-free asset is:

If the market portfolio has an expected return of 0.12 and a standard deviation of 0.40, and the risk-free rate is 0.04, what is the slope of the security market line?

The Scope of Corporate Finance and Financial Statement and Cash Flow Analysis

The Time Value of Money

Valuing Bonds and Valuing Stocks

The Trade-Off Between Risk and Return

Capital Budgeting Process and Decision Criteria and Cash Flow and Capital Budgeting

Risk, Capital Budgeting and Raising Long-Term Financing

Capital Structure

Dividend Policy and Long-Term Debt and Leasing

Financial Planning, Cash Conversion, Inventory, and Receivables Management

Cash, Payables, and Liquidity Management

Options and International Financial Management

Entrepreneurial Finance, Venture Capita, Mergers, Acquisitions, and Corporate Control

Risk Management, Bankruptcy and Financial Distress

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Exam 5: Risk, Return, and the Capital Asset Pricing Model

-Given Exhibit 7-2, what is the expected variance?

An investor has $10,000 invested in Treasury securities and $15,000 invested in stock UVW. UVW has a beta of 1.2. What is the beta of the portfolio?

-Given Exhibit 7-6, what is the portfolio beta?

-Given Exhibit 7-1, what is the expected return?

-Given Exhibit 7-1, what is the expected standard deviation?

‪ -Given Exhibit 7-7, what is the portfolio beta?

-Given Exhibit 7-3, what is the expected return on the portfolio?

-Given Exhibit 7-2, what is the expected standard deviation?

-Given Exhibit 7-1, what is the expected variance?

The beta of the risk-free asset is:

If the market portfolio has an expected return of 0.12 and a standard deviation of 0.40, and the risk-free rate is 0.04, what is the slope of the security market line?

The Scope of Corporate Finance and Financial Statement and Cash Flow Analysis

The Time Value of Money

Valuing Bonds and Valuing Stocks

The Trade-Off Between Risk and Return

Capital Budgeting Process and Decision Criteria and Cash Flow and Capital Budgeting

Risk, Capital Budgeting and Raising Long-Term Financing

Capital Structure

Dividend Policy and Long-Term Debt and Leasing

Financial Planning, Cash Conversion, Inventory, and Receivables Management

Cash, Payables, and Liquidity Management

Options and International Financial Management

Entrepreneurial Finance, Venture Capita, Mergers, Acquisitions, and Corporate Control

Risk Management, Bankruptcy and Financial Distress

Filters