Exam 7: An Introduction to Risk and Return-History of Financial Market Returns

What is the geometric average return of Roddy's Richard's investment?

Under the efficient market hypothesis,would securities be properly priced.

How much money did Roddy Richards receive when he sold his shares of W.M.D.?

Because returns are more certain for the least risky investments,the required return on these investments should be higher than the required returns on more risky investments.

Which of the following sequences is arranged in the correct order,from highest long-term returns to lowest?

Michael Lynch invested $10,000 in the Rearguard Fund four years ago.All earnings were reinvested in the fund.If his compound annual rate of return was 7%,what is his investment worth today?

The risk-return tradeoff tells us that expected returns should be higher on investments that have higher risk.

What is the standard deviation of an investment that has the following expected scenario? 18% probability of a recession,2.0% return;65% probability of a moderate economy,9.5% return;17% probability of a strong economy,14.2% return.

Madison was hired to design and decorate the offices of a large pharmaceutical company.She accidentally read a report indicating that a new drug had just been approved by the Food and Drug administration.She immediately bought the company's stock which doubled in price over the following week.This outcome is inconsistent with

Jayden spends a lot of time studying charts of stocks past performance,but his investment return are only average.This outcome supports

Investments that have earned the highest rates of return over time also have