Exam 12: Financial Return and Risk Concepts

Assume the probability of a pessimistic,most likely and optimistic state of nature is .25,.55 and .20,and the returns associated with those states of nature are 5%,10%,and 13% for asset Y.Based on this information,the expected return,standard deviation,and coefficient of variation for asset Y are:

(Multiple Choice)

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Question 21

Which of the following statements is most correct?

(Multiple Choice)

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Question 22

A strong-form efficient market is one in which prices reflect all public knowledge,including past and current information.

(True/False)

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Question 23

Which of the following is not required to compute the standard deviation of a two-stock portfolio?

(Multiple Choice)

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Question 24

Unlike ,_can continually sell new shares to willing investors.

(Multiple Choice)

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Question 25

If the expected return is 10%,the standard deviation is 3%,about 68% of the time returns will be expected to fall between 10% and 13%.

(True/False)

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Question 26

The Security Market Line describes the relationship between the:

(Multiple Choice)

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Question 27

Beta measures the variability of an asset's returns relative to the market portfolio.

(True/False)

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Question 28

A portfolio is any combination of financial assets or investments.

(True/False)

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Question 29

Which of the following statements is most correct?

(Multiple Choice)

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Question 30

Which of the following statements is most correct?

(Multiple Choice)

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Question 31

Rico bought 100 shares of Banana Republic stock for $24.00 per share on January 1,2010.He received a dividend of $2.00 per share at the end of 2010 and $3.00 per share at the end of 2011.At the end of 2012,Rico collected a dividend of $4.00 per share and sold his stock for $18.00 per share.What was Rico's realized holding period return?

(Multiple Choice)

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Question 32

Which of the following statements is most correct?

(Multiple Choice)

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Question 33

The square root of the standard deviation is called the:

(Multiple Choice)

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Question 34

The return on a portfolio is simply equal to the weighted average return of the securities that comprise it.

(True/False)

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Question 35

The linear relation between the returns on a stock and the returns on the market portfolio is called the:

(Multiple Choice)

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Question 36

As defined in accordance with efficient markets notions,a strong-form efficient market would be a market in which asset prices reflect all:

(Multiple Choice)

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Question 37

Which of the following statements is most correct?

(Multiple Choice)

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Question 38

The only relevant risk for investors that hold diversified portfolios of securities is nondiversifiable risk.

(True/False)

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Question 39

Which of the following statements is most correct?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 150

Assume the probability of a pessimistic,most likely and optimistic state of nature is .25,.55 and .20,and the returns associated with those states of nature are 5%,10%,and 13% for asset Y.Based on this information,the expected return,standard deviation,and coefficient of variation for asset Y are:

Which of the following statements is most correct?

A strong-form efficient market is one in which prices reflect all public knowledge,including past and current information.

Which of the following is not required to compute the standard deviation of a two-stock portfolio?

Unlike ,_can continually sell new shares to willing investors.

If the expected return is 10%,the standard deviation is 3%,about 68% of the time returns will be expected to fall between 10% and 13%.

The Security Market Line describes the relationship between the:

Beta measures the variability of an asset's returns relative to the market portfolio.

A portfolio is any combination of financial assets or investments.

Which of the following statements is most correct?

Which of the following statements is most correct?

Which of the following statements is most correct?

The square root of the standard deviation is called the:

The return on a portfolio is simply equal to the weighted average return of the securities that comprise it.

The linear relation between the returns on a stock and the returns on the market portfolio is called the:

As defined in accordance with efficient markets notions,a strong-form efficient market would be a market in which asset prices reflect all:

Which of the following statements is most correct?

The only relevant risk for investors that hold diversified portfolios of securities is nondiversifiable risk.

Which of the following statements is most correct?

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 12: Financial Return and Risk Concepts

Assume the probability of a pessimistic,most likely and optimistic state of nature is .25,.55 and .20,and the returns associated with those states of nature are 5%,10%,and 13% for asset Y.Based on this information,the expected return,standard deviation,and coefficient of variation for asset Y are:

Which of the following statements is most correct?

A strong-form efficient market is one in which prices reflect all public knowledge,including past and current information.

Which of the following is not required to compute the standard deviation of a two-stock portfolio?

Unlike ____________ ,_____________can continually sell new shares to willing investors.

If the expected return is 10%,the standard deviation is 3%,about 68% of the time returns will be expected to fall between 10% and 13%.

The Security Market Line describes the relationship between the:

Beta measures the variability of an asset's returns relative to the market portfolio.

A portfolio is any combination of financial assets or investments.

Which of the following statements is most correct?

Which of the following statements is most correct?

Which of the following statements is most correct?

The square root of the standard deviation is called the:

The return on a portfolio is simply equal to the weighted average return of the securities that comprise it.

The linear relation between the returns on a stock and the returns on the market portfolio is called the:

As defined in accordance with efficient markets notions,a strong-form efficient market would be a market in which asset prices reflect all:

Which of the following statements is most correct?

The only relevant risk for investors that hold diversified portfolios of securities is nondiversifiable risk.

Which of the following statements is most correct?

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Unlike ,_can continually sell new shares to willing investors.