Question 1

An asset had annual returns of 12,18,6,-9,and 5 percent,respectively,for the last five years.What is the variance of these returns?

Accepted Answer

A)  0.00810 
B)  0.01013 
C)  0.01065 
D)  0.02038 
E)  0.04052 
A)  0.00810 
B)  0.01013 
C)  0.01065 
D)  0.02038 
E)  0.04052

Question 2

A portfolio had an original value of $7,400 seven years ago.The current value of the portfolio is $11,898.What is the average geometric return on this portfolio?

Accepted Answer

A)  7.02 percent 
B)  7.47 percent 
C)  7.59 percent 
D)  7.67 percent 
E)  7.88 percent 
A)  7.02 percent 
B)  7.47 percent 
C)  7.59 percent 
D)  7.67 percent 
E)  7.88 percent

Question 3

Which one of the following is considered the best method of comparing the returns on various-sized investments?

Accepted Answer

A)  total dollar return 
B)  real dollar return 
C)  absolute dollar return 
D)  percentage return 
E)  variance return 
A)  total dollar return 
B)  real dollar return 
C)  absolute dollar return 
D)  percentage return 
E)  variance return

Question 4

You own a stock that has produced an arithmetic average return of 5.6 percent over the past five years.The annual returns for the first four years were 15,10,-18,and 8 percent,respectively.What was the rate of return on the stock in year five?

Accepted Answer

A)  -5.00 percent 
B)  2.75 percent 
C)  6.25 percent 
D)  13.00 percent 
E)  32.00 percent 
A)  -5.00 percent 
B)  2.75 percent 
C)  6.25 percent 
D)  13.00 percent 
E)  32.00 percent

An asset had annual returns of 12,18,6,-9,and 5 percent,respectively,for the last five years.What is the variance of these returns?

A portfolio had an original value of $7,400 seven years ago.The current value of the portfolio is $11,898.What is the average geometric return on this portfolio?

Which one of the following is considered the best method of comparing the returns on various-sized investments?

You own a stock that has produced an arithmetic average return of 5.6 percent over the past five years.The annual returns for the first four years were 15,10,-18,and 8 percent,respectively.What was the rate of return on the stock in year five?

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

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Exam 1: A Brief History of Risk and Return

An asset had annual returns of 12,18,6,-9,and 5 percent,respectively,for the last five years.What is the variance of these returns?

A portfolio had an original value of $7,400 seven years ago.The current value of the portfolio is $11,898.What is the average geometric return on this portfolio?

Which one of the following is considered the best method of comparing the returns on various-sized investments?

You own a stock that has produced an arithmetic average return of 5.6 percent over the past five years.The annual returns for the first four years were 15,10,-18,and 8 percent,respectively.What was the rate of return on the stock in year five?

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return,Risk,and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters