Exam 9: Characterizing Risk and Return

JoJo's portfolio's return is 12 percent.She is invested in Cisco and IBM which had returns of 15 percent and 9 percent respectively.What percentage of JoJo's assets are invested in each firm?

Which of the following is the concept and procedure for combining securities into a portfolio to minimize risk?

Compute the standard deviation of the five monthly returns for PG&E: 1.25 percent,−1.50 percent,4.25 percent,3.75 percent,and 1.98 percent.

Which of the following is correct regarding the total risk of a company?

If you own 600 shares of Alaska Corporation at $23.25,450 shares of Best Company at $34.50,and 150 shares of Motor Company at $6.95,what are the portfolio weights of each stock?

Jane Adams invests all her money in the stock of one firm.Which of the following must be true?

If you own 400 shares of Xerox at $15.00,500 shares of Qwest at $10.00,and 350 shares of Liz Claiborne at $45.00,what are the portfolio weights of each stock?

Which of the following statements is correct regarding total risk?

Which of the following statements is correct?

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?

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.

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.

At the beginning of the month,you owned $6,000 of Company G,$8,000 of Company S,and $1,000 of Company N.The monthly returns for Company G,Company S,and Company N were 7.25 percent,−1.50 percent,and −0.23 percent.What is your portfolio return?

You have $15,040 to invest.You want to purchase shares of Company Air at $42.50,Company B at $51.50,and Company F at $9.75.How many shares of each company should you purchase so that your portfolio consists of 20 percent Company A,40 percent Company B,and 40 percent Company F? Report only whole stock shares.

Which of the following statements is correct with regards to diversification?

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?

Which of the following is another term for market risk?

Which of the following statements is correct?

TechNo stock was $25 per share at the end of last year.Since then,it paid a $1.50 per share dividend last year.The stock price is currently $23.If you owned 300 shares of TechNo,what was your percent return?

You have $45,050 to invest.You want to purchase shares of Company Air at $10.25,Company B at $15.10,and Company F at $9.05.How many shares of each company should you purchase so that your portfolio consists of 30 percent Company A,50 percent Company B,and 20 percent Company F? Report only whole stock shares.