Chat with AIExam 11: Return and Risk: the Capital Asset Pricing Model Capm
Exam 1: Introduction to Corporate Finance67 Questions
Exam 2: Financial Statements and Cash Flow94 Questions
Exam 3: Financial Statements Analysis and Financial Models120 Questions
Exam 4: Discounted Cash Flow Valuation134 Questions
Exam 5: Net Present Value and Other Investment Rules105 Questions
Exam 6: Making Capital Investment Decisions101 Questions
Exam 7: Risk Analysis, Real Options, and Capital Budgeting99 Questions
Exam 8: Interest Rates and Bond Valuation69 Questions
Exam 9: Stock Valuation77 Questions
Exam 10: Risk and Return: Lessons From Market History84 Questions
Exam 11: Return and Risk: the Capital Asset Pricing Model Capm136 Questions
Exam 12: An Alternative View of Risk and Return: The Arbitrage Pricing Theory51 Questions
Exam 13: Risk, Cost of Capital, and Valuation59 Questions
Exam 14: Efficient Capital Markets and Behavioral Challenges65 Questions
Exam 15: Long-Term Financing46 Questions
Exam 16: Capital Structure: Basic Concepts91 Questions
Exam 17: Capital Structure: Limits to the Use of Debt74 Questions
Exam 18: Valuation and Capital Budgeting for the Levered Firm57 Questions
Exam 19: Dividends and Other Payouts90 Questions
Exam 20: Raising Capital73 Questions
Exam 21: Leasing55 Questions
Exam 22: Options and Corporate Finance95 Questions
Exam 23: Options and Corporate Finance: Extensions and Applications46 Questions
Exam 24: Warrants and Convertibles58 Questions
Exam 25: Derivatives and Hedging Risk66 Questions
Exam 26: Short-Term Finance and Planning124 Questions
Exam 27: Cash Management59 Questions
Exam 28: Credit and Inventory Management61 Questions
Exam 29: Mergers, Acquisitions, and Divestitures83 Questions
Exam 30: Financial Distress52 Questions
Exam 31: International Corporate Finance95 Questions
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You recently purchased a stock that is expected to earn 25% in a booming economy,9% in a normal economy and lose 8% in a recessionary economy. There is a 15% probability of a boom,a 65% chance of a normal economy,and a 10% chance of a recession. What is your expected rate of return on this stock?
(Multiple Choice)
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(40) You are considering purchasing stock S. This stock has an expected return of 8% if the economy booms and 3% if the economy goes into a recessionary period. The overall expected rate of return on this stock will:
(Multiple Choice)
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(38) You own a portfolio with the following expected returns given the various states of the economy. What is the overall portfolio expected return?
(Multiple Choice)
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(36) The stock of Big Joe's has a beta of 1.14 and an expected return of 11.6%. The risk-free rate of return is 4%. What is the expected return on the market?
(Multiple Choice)
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(45) Quantpiks has been a hot stock the last few years,but is risky. The expected returns for Quantpiks are highly dependent on the state of the economy as follows: The variance of Quantpiks returns is:
(Multiple Choice)
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(40) What is the portfolio variance if 30% is invested in stock S and 70% is invested in stock T?
(Multiple Choice)
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(42) The intercept point of the security market line is the rate of return which corresponds to:
(Multiple Choice)
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(29) The percentage of a portfolio's total value invested in a particular asset is called that asset's:
(Multiple Choice)
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(31) If the economy booms,RTF,Inc. stock is expected to return 10%. If the economy goes into a recessionary period,then RTF is expected to only return 4%. The probability of a boom is 60% while the probability of a recession is 40%. What is the variance of the returns on RTF,Inc. stock?
(Multiple Choice)
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(40) What is the variance of a portfolio consisting of $3,500 in stock G and $6,500 in stock H?
(Multiple Choice)
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