🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books

Risk And Return Quiz 3 (25 MCQs)

Quiz Instructions:

Select an option to see the correct answer instantly.

1. Government Securities

2. _____ risk affects both savings and investing.

3. Interest Bearing Checking Account

4. Assuming no change in the credit risk of a bond, the presence of an embedded put option:

5. For investors with more time until retirement, the focus should be on _____

6. Short-term debt securities issued by the Federal Government

7. Based on coefficient of variation, which investment is less risky?

8. Two stocks with the following criteria:Share A return three years 12.5%;10%;10%Share B return three years 15%;7%;10%The weight for each year is 50% Determine the correlation coefficient of the two stocks! answer choices

9. An investor is the least tolerant of risk during this stage of the lifecycle.

10. The appropriate cost of capital for a project depends on:

11. Risk is used interchangeably with _____ to explain the variability of returns.

12. Which is the riskiest investment?

13. Investors should be agreeing to invest in the Riskier investments merely

14. The expected risk premium on a stock is equal to the expected return on the stock minus the:

15. Total risk is measured by _____ and systematic risk is measured by _____

16. A portfolio has three stocks-240 shares of Yahoo (YHOO), 150 Shares of General Motors (GM), and 40 shares of Standard and Poor's Index Fund (SPY). If portfolio weight of YHOO is 0.426 and portfolio weight of GM is 0.266.Calculate the portfolio weight of SPY.

17. To calculate the required rate of returns from a stock or portfolio, the equation is used:

18. Suzie owns five different bonds and twelve different stocks. Which one of the following terms most applies to her investments?

19. If you need money within five years you should _____

20. A portfolio consists of $ 15, 400 in Stock M and $ 23, 900 invested in Stock N. The expected return on these stocks is 9.20 percent and 12.60 percent, respectively. What is the expected return on the portfolio?

21. You have a portfolio that is equally invested in Stock F with a beta of 1.07, Stock G with a beta of 1.44, and the risk-free asset. What is the beta of your portfolio?

22. The expected return on an investment is _____

23. What happens when Beta < 1.0

24. What is required returns?

25. Slope of the security market line is

← Previous Next →

🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books

Risk And Return Quiz 3 (25 MCQs)

Quiz Instructions:

Related Quizzes