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Risk And Return Quiz 1 (25 MCQs)

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1. A stock has an expected return of 13.24 percent, the risk-free rate is 4.4 percent, and the market risk premium is 8.98 percent. What is the stock's beta?
2. Portfolio of two stocks with the following criteria:Share A, Beta 1.7, weight 37%Share B, Beta 1.2, weight 63%Beta portfolio is _____
3. Tighter the probability distributions
4. What does Stand alone risk consist of?
5. If you created a graph with investment risk on the x-axis and investment return on the y-axis and plotted points for two different investments, a line going through the points would probably be:
6. Starting an investment portfolio at a young age means:
7. _____ function of security analysis is concerned with collecting, analysing, interpreting and presenting important facts related to a security
8. Portfolio of two stocks with the following criteria:Share A, Beta 0.15, weight 50%Share B, Beta 1.93, weight 50%Beta portfolio is _____
9. The uncertainty caused by the variability of a company's cash flows is called:
10. Probability = 15%; Return =-5%Probability = 20%; Return = 10%Probability = 30%; Return = 15%Probability = 35%; Return = 25%What is the expected rate of return on the investment?
11. Concept that nothing is free
12. Companies with less than $ 2 Billion Market Capital
13. The largest component of returns for a 7-year zero-coupon bond yielding 8% and held to maturity is:
14. Which of the following three bonds (similar except for yield and maturity) has the least Macaulay duration? A bond with:
15. Which of these are included in the calculation of expected return?
16. Certificate of Deposit
17. Which of the following scenarios shows a perfectly negative correlation on stocks
18. A minimum-variance portfolio formed by investing in only stocks must be _____
19. In a portfolio, how does one choose between 2 stocks to reduce risk without sacrificing return?
20. Companies between $ 2 Billion and $ 10 Billion market capital
21. Before you begin investing, you need to _____
22. Investors can eliminate what type of risk by diversifying?
23. Exposure to loss or damage
24. _____ refers to the portion of an asset's risk that attributes to firm's specific random events, for example strikes and robberies, that can be eliminated by diversification.
25. Fremont Enterprises has an expected return of 16% and Laurelhurst News has an expected return of 19%. If you put 48% of your portfolio in Laurelhurst and 52% in Fremont, what is the expected return of your portfolio?
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