Question 1

The expected outcomes for Louis Stock are below; what is the expected standard deviation of Louis Stock?

Accepted Answer

A)  2.885% 
B)  0.083% 
C)  2.968% 
D)  0.088% 
A)  2.885% 
B)  0.083% 
C)  2.968% 
D)  0.088%

Question 2

NARRBEGIN: Exhibit 7-7
Exhibit 7-7
  
-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 3

Which of the following approaches to estimating an asset's expected return assumes that the future and the past share much in common?

Accepted Answer

A)  Historical 
B)  Probabilistic 
C)  Risk-based 
D)  all of the above 
A)  Historical 
B)  Probabilistic 
C)  Risk-based 
D)  all of the above

Question 4

NARRBEGIN: Exhibit 7-4
Exhibit 7-4
  
-Given Exhibit 7-4,what is the weight of Security 1?

Accepted Answer

A)  25% 
B)  35% 
C)  45% 
D)  55% 
A)  25% 
B)  35% 
C)  45% 
D)  55%

Question 5

The stock of Alpha Company has an expected return of 18% and a beta of 1.5,and Gamma Company stock has an expected return of 15.6% and a beta of 1.2.Assume the CAPM holds.What's the risk-free rate?

Accepted Answer

A)  8.0% 
B)  6.0% 
C)  0% 
D)  4.7% 
A)  8.0% 
B)  6.0% 
C)  0% 
D)  4.7%

Question 6

The expected outcomes of Emma Stock are below; what is the expected variance of Emma Stock?

Accepted Answer

A)  2.252% 
B)  0.051% 
C)  2.303% 
D)  0.053% 
A)  2.252% 
B)  0.051% 
C)  2.303% 
D)  0.053%

Question 7

The country with the highest level of systematic risk is:

Accepted Answer

A)  Russia 
B)  Poland 
C)  Taiwan 
D)  USA 
A)  Russia 
B)  Poland 
C)  Taiwan 
D)  USA

Question 8

An investor put 40% of her money in Stock A and 60% in Stock B.Stock A has a beta of 1.2 and Stock B has a beta of 1.6.If the risk-free rate is 5% and the expected return on the market is 12%,what's the investor's expected return?

Accepted Answer

A)  22.28% 
B)  14.80% 
C)  15.08% 
D)  21.80% 
A)  22.28% 
B)  14.80% 
C)  15.08% 
D)  21.80%

The expected outcomes for Louis Stock are below; what is the expected standard deviation of Louis Stock?

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

Which of the following approaches to estimating an asset's expected return assumes that the future and the past share much in common?

NARRBEGIN: Exhibit 7-4 Exhibit 7-4 -Given Exhibit 7-4,what is the weight of Security 1?

The stock of Alpha Company has an expected return of 18% and a beta of 1.5,and Gamma Company stock has an expected return of 15.6% and a beta of 1.2.Assume the CAPM holds.What's the risk-free rate?

The expected outcomes of Emma Stock are below; what is the expected variance of Emma Stock?

The country with the highest level of systematic risk is:

An investor put 40% of her money in Stock A and 60% in Stock B.Stock A has a beta of 1.2 and Stock B has a beta of 1.6.If the risk-free rate is 5% and the expected return on the market is 12%,what's the investor's expected return?

The Scope of Corporate Finance

Financial Statement and Cash Flow Analysis

The Time Value of Money

Valuing Bonds

Valuing Stocks

The Trade-Off Between Risk and Return

Capital Budgeting Process and Decision Criteria

Cash Flow and Capital Budgeting

Risk and Capital Budgeting

Raising Long-Term Financing

Capital Structure

Long-Term Debt and Leasing

Payout Policy

Financial Planning

Cash Conversion, inventory, and Receivables Management

Cash, payables, and Liquidity Management

International Financial Management

Options

Entrepreneurial Finance and Venture Capital

Mergers, acquisitions, and Corporate Control

Bankruptcy and Financial Distress

Risk Management

Filters

Exam 7: Risk,return,and the Capital Asset Pricing Model

The expected outcomes for Louis Stock are below; what is the expected standard deviation of Louis Stock?

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

Which of the following approaches to estimating an asset's expected return assumes that the future and the past share much in common?

NARRBEGIN: Exhibit 7-4 Exhibit 7-4 -Given Exhibit 7-4,what is the weight of Security 1?

The stock of Alpha Company has an expected return of 18% and a beta of 1.5,and Gamma Company stock has an expected return of 15.6% and a beta of 1.2.Assume the CAPM holds.What's the risk-free rate?

The expected outcomes of Emma Stock are below; what is the expected variance of Emma Stock?

The country with the highest level of systematic risk is:

An investor put 40% of her money in Stock A and 60% in Stock B.Stock A has a beta of 1.2 and Stock B has a beta of 1.6.If the risk-free rate is 5% and the expected return on the market is 12%,what's the investor's expected return?

The Scope of Corporate Finance

Financial Statement and Cash Flow Analysis

The Time Value of Money

Valuing Bonds

Valuing Stocks

The Trade-Off Between Risk and Return

Capital Budgeting Process and Decision Criteria

Cash Flow and Capital Budgeting

Risk and Capital Budgeting

Raising Long-Term Financing

Capital Structure

Long-Term Debt and Leasing

Payout Policy

Financial Planning

Cash Conversion, inventory, and Receivables Management

Cash, payables, and Liquidity Management

International Financial Management

Options

Entrepreneurial Finance and Venture Capital

Mergers, acquisitions, and Corporate Control

Bankruptcy and Financial Distress

Risk Management

Filters