Exam 9: Characterizing Risk and Return

Average Return The past five monthly returns for K and Company are 2.28 percent,2.64 percent,-1.05 percent,4.25 percent,and 9.25 percent.What is the average monthly return?

We commonly measure the risk-return relationship using which of the following?

Portfolio Return At the beginning of the month,you owned $8,000 of Company G,$8,000 of Company S,and $3,000 of Company N.The monthly returns for Company G,Company S,and Company N were 7.80 percent,1.50 percent,and -0.75 percent.What is your portfolio return?

Which of the following is a measurement of the co-movement between two variables that ranges between -1 and +1?

Portfolio Return The following table shows your stock positions at the beginning of the year,the dividends that each stock paid during the year,and the stock prices at the end of the year.What is your portfolio percentage return?

Risk versus Return Rank the following three stocks by their risk-return relationship,best to worst.Rail Haul has an average return of 10 percent and standard deviation of 15 percent.The average return and standard deviation of Idol Staff are 15 percent and 25 percent; and of Poker-R-Us are 12 percent and 35 percent.

Sharif's portfolio generated returns of 12 percent,15 percent,-15 percent,19 percent,and -12 percent over five years.What was his average return over this period?

Which statement is true?

Which of the following makes this a true statement: The shape of the efficient frontier implies that:

Rank the following three stocks by their risk-return relationship,best to worst.Rail Haul has an average return of 10 percent and standard deviation of 19 percent.The average return and standard deviation of Idol Staff are 12 percent and 22 percent; and of Poker-R-Us are 11 percent and 25 percent.

Dominant Portfolios Determine which one of these three portfolios dominates another.Name the dominated portfolio and the portfolio that dominates it.Portfolio Blue has an expected return of 7 percent and risk of 10 percent.The expected return and risk of portfolio Yellow are 13 percent and 10 percent,and for the Purple portfolio are 9 percent and 14 percent.

Which of the following statements is correct?

Which of these is a measure summarizing the overall past performance of an investment?

Portfolio Weights If you own 100 shares of Air Line Inc.at $42.50,250 shares of BuyRite at $53.25,and 350 shares of MotorCity at $7.75,what are the portfolio weights of each stock?

Which of these is the dollar return characterized as a percentage of money invested?

Risk versus Return Rank the following three stocks by their risk-return relationship,best to worst.Rail Haul has an average return of 8 percent and standard deviation of 10 percent.The average return and standard deviation of Idol Staff are 10 percent and 20 percent; and of Poker-R-Us are 6 percent and 15 percent.

Why is the percentage return a more useful measure than the dollar return?

Which of the following statements is correct regarding total risk?

Which of the following describes what will occur as you randomly add stocks to your portfolio?