The variance of stock a is .004, the variance of the market is .007

Question

Question 1

The variance of Stock A is .004, the variance of the market is .007 and the covariance between the two is .0026. What is the correlation coefficient?

A. .9285

B. .8542

C. .5010

D. .4913

E. .3510

2 points Save Answer

Question 2

Which one of the following is an example of systematic risk?

A. the price of lumber declines sharply

B. airline pilots go on strike

C. the Federal Reserve increases interest rates

D. a hurricane hits a tourist destination

E. people become diet conscious and avoid fast food restaurants

2 points Save Answer

Question 3

According to the Capital Asset Pricing Model:

A. the expected return on a security is negatively and non-linearly related to the security’s beta.

B. the expected return on a security is negatively and linearly related to the security’s beta.

C. the expected return on a security is positively and linearly related to the security’s variance.

D. the expected return on a security is positively and non-linearly related to the security’s beta.

E. the expected return on a security is positively and linearly related to the security’s beta.

2 points Save Answer

Question 4

Which one of the following would indicate a portfolio is being effectively diversified?

A. an increase in the portfolio beta

B. a decrease in the portfolio beta

C. an increase in the portfolio rate of return

D. an increase in the portfolio standard deviation

E. a decrease in the portfolio standard deviation

2 points Save Answer

Question 5

Which one of the following is an example of unsystematic risk?

A. the inflation rate increases unexpectedly

B. the federal government lowers income taxes

C. an oil tanker runs aground and spills its cargo

D. interest rates decline by one-half of one percent

E. the GDP rises by 2% more than anticipated

2 points Save Answer

Question 6

Diversification can effectively reduce risk. Once a portfolio is diversified, the type of risk remaining is:

A. individual security risk.

B. riskless security risk.

C. risk related to the market portfolio.

D. total standard deviations.

E. None of these.

2 points Save Answer

Question 7

A portfolio contains two assets. The first asset comprises 40% of the portfolio and has a beta of 1.2. The other asset has a beta of 1.5. The portfolio beta is:

A. 1.35

B. 1.38

C. 1.42

D. 1.50

E. 1.55

2 points Save Answer

Question 8

Excelsior share are currently selling for $25 each. You bought 200 shares one year ago at $24 and received dividend payments of $1.50 per share. What was your total rate of return?

A. 4.17%

B. 6.25%

C. 10.42%

D. 104.67%

E. 110.42%

2 points Save Answer

Question 9

You just sold 200 shares of Langley, Inc. stock at a price of $38.75 a share. Last year you paid $41.50 a share to buy this stock. Over the course of the year, you received dividends totaling $1.64 per share. What is your capital gain on this investment?

A. -$550

B. -$222

C. -$3

D. $550

E. $878

2 points Save Answer

Question 10

Over the past five years, a stock produced returns of 14%, 22%, -16%, 2%, and 10%. What is the probability that an investor in this stock will NOT lose more than 8% nor earn more than 21% in any one given year?

A. 34%

B. 68%

C. 95%

D. 99%

E. 100%

2 points Save Answer

Question 11

Excelsior shares are currently selling for $25 each. You bought 200 shares one year ago at $24 and received dividend payments of $1.50 per share. What was your percentage capital gain this year?

A. 4.17%

B. 6.25%

C. 10.42%

D. 104.17%

E. 110.42%

2 points Save Answer

Question 12

A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the _____ distribution.

A. gamma

B. Poisson

C. bi-modal

D. Normal

E. Uniform

2 points Save Answer

Question 13

What are the arithmetic and geometric average returns for a stock with annual returns of 21%, 8%, -32%, 41%, and 5%?

A. 5.6%; 8.6%

B. 5.6%; 6.3%

C. 8.6%; 5.6%

D. 8.6%; 8.6%

E. 8.6%; 6.3%

2 points Save Answer

Question 14

The return pattern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years. What has been your average return and holding period return over the last 5 years?

A. 4.5%; 6.5%

B. 7.4%; 38.9%

C. 7.4%; 7.76%

D. 7.4%; 76.73%

E. None of these

2 points Save Answer

Question 15

A year ago, you purchased 300 shares of IXC Technologies, Inc. stock at a price of $9.03 per share. The stock pays an annual dividend of $.10 per share. Today, you sold all of your shares for $28.14 per share. What is your total dollar return on this investment?

A. $5,703

B. $5,733

C. $5,753

D. $5,763

E. $5,853

2 points Save Answer

 

 

 

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more