Exam 9: Characterizing Risk and Return

A stock has an expected return of 15 percent and a standard deviation of 20 percent.Long-term Treasury bonds have an expected return of 9 percent and a standard deviation of 11 percent.Given this data,which of the following statements is correct?

An investor owns $10,000 of Adobe Systems stock,$15,000 of Dow Chemical,and $25,000 of Office Depot.What are the portfolio weights of each stock?

If you own 300 shares of Alaska Air at $15.88,250 shares of Best Buy at $151.00,and 1,150 shares of Ford Motor at $3.51,what are the portfolio weights of each stock?

WayCo stock was $75 per share at the end of last year.Since then,it paid a $3 per share dividend last year.The stock price is currently $70.If you owned 200 shares of WayCo,what was your percent 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?

A stock has an expected return of 12 percent and a standard deviation of 25 percent.Long-term Treasury bonds have an expected return of 5 percent and a standard deviation of 9 percent.Given this data,which of the following statements is correct?

Which of the following statements is correct?

Rank the following three stocks by their level of total risk,highest to lowest.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.

A stock has an expected return of 12 percent and a standard deviation of 20 percent.Long-term Treasury bonds have an expected return of 9 percent and a standard deviation of 15 percent.Given this data,which of the following statements is correct?

The past five monthly returns for PG Company are 3.25 percent,−1.45 percent,4.35 percent,6.49 percent,and 3.75 percent.What is the average monthly return?

The past five monthly returns for PG&E are 12.14 percent,−11.37 percent,3.77 percent,6.47 percent,and 3.58 percent.What is the average monthly return?

Sprint Nextel Corp.stock ended the previous year at $25.00 per share.It paid a $2.57 per share dividend last year.It ended last year at $18.89.If you owned 650 shares of Sprint,what was your dollar return and percent return?

The standard deviation of 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 standard deviation?

Rank the following three stocks by their total risk level,highest to lowest.Night Ryder has an average return of 14 percent and standard deviation of 30 percent.The average return and standard deviation of WholeMart are 12 percent and 25 percent; and of Fruit Fly are 25 percent and 40 percent.

Which of the following is the correct ranking from least risky to most risky?

The total risk of the S&P 500 Index is equal to:

The past five monthly returns for Kohl's are 2.55 percent,−8.62 percent,−14.44 percent,−1.52 percent,and 4.75 percent.What is the average monthly return?

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

Which of these is a measure of risk to reward earned by an investment over a specific period of time?

If you own 1,000 shares of Alaska Corporation at $19.95,250 shares of Best Company at $17.50,and 250 shares of Motor Company at $2.50,what are the portfolio weights of each stock?