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Strayer FIn100 week 6 quiz

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Question;1.;Which of;these is a measure summarizing the overall past performance of an investment?;Average return;Dollar return;Market return;Percentage return.;Which of the;following is the reward investors require for taking risk?;Market risk premium;Required return;Risk-free rate;Risk premium;Top of Form;3.;Which of the following is defined as the volatility of an;investment, which includes firm specific risk as well as market risk?;Market risk;Total risk;Diversifiable risk;Standard deviation;4.;Which of these is the set of probabilities for all possible;occurrences?;Market probabilities;Probability distribution;Probability;Stock market bubble;5.;Which of;these is the investor's combination of securities that achieves the highest;expected return for a given risk level?;Efficient portfolio;Total portfolio;Optimal portfolio;Modern portfolio;6.;To find the percentage return of an investment;divide the dollar return by the investment's value at the;beginning of the period.;multiply the dollar return by the investment's value at the;beginning of the period.;multiply the dollar return by the investment's value at the end;of the period.;divide the dollar return by the investment's value at the end of;the period..;To find the;percentage return of an investment;divide the dollar return by the investment's value at the;beginning of the period.;multiply the dollar return by the investment's value at the;beginning of the period.;multiply the dollar return by the investment's value at the end;of the period.;divide the dollar return by the investment's value at the end of;the period.;7.;Which of the;following is an index that tracks 500 companies, which allows for a great deal;of diversification?;Fortune 500;Wall Street Journal;Nasdaq;S&P 500;8.;Which of;these is the line on a graph of return and risk (standard deviation) from the;risk-free rate through the market portfolio?;Efficient market line;Capital market line;Efficient market hypothesis;Capital asset pricing line;9.;Which of the;following is a model that includes an equation that relates a stock's required;return to an appropriate risk premium?;Efficient markets;Beta;Behavioral finance;Asset pricing;10.;Which of the;following is data that includes past stock prices and volume, financial;statements, corporate news, analyst opinions, etc.?;Generally accepted accounting principles;Public information;Privately held information;Audited financial statements;11.;Which of the;following are the stocks of small companies that are priced below $1 per share?;Penny stocks;Hedge fund stocks;Bargain stocks;Stock market bubble stocks;12.;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?;6 percent;-2 percent;6.5 percent;-8 percent;13.;Which of the;following is another term for market risk?;Modern portfolio risk;Firm specific risk;Total risk;Nondiversifiable risk;14.;Investor;enthusiasm causes an inflated bull market that drives prices too high, ending;in a dramatic collapse in prices is known as;privately held information.;efficient market.;behavior finance.;stock market bubble.;15.;Which of the following is defined as the portion of total risk;that is attributable to firm or industry factors and can be reduced through;diversification?;Modern portfolio risk;Firm specific risk;Market risk;Total risk.;Which of the;following is a true statement?;If a firm takes on riskier new projects over time, the firm;itself will become less risky.;Firms can quite possibly change their stocks' risk level by;substantially changing their business.;The risk and return that a firm experienced in the past is also;the risk level for its future.;If a firm takes on less risky new projects over time, the firm;itself will become more risky.;17.;Which of these is similar to the Capital Market Line, except that;risk is characterized by beta instead of standard deviation?;Security market line;Probability market line;Stock market line;Market risk line;18.;Which of;these includes any capital gain (or loss) that occurred as well as any income;that you received from a specific investment?;Portfolio;Average return;Market return;Dollar return;19.;In theory;which of these is a combination of securities that places the portfolio on the;efficient frontier and on a line tangent from the risk-free rate?;Efficient market;Market portfolio;Stock market bubble;Probability distribution;Top of Form;20.;We commonly measure the risk-return relationship using which of;the following?;Expected returns;Correlation coefficient;Coefficient of variation;Standard deviation;Bottom of Form;Bottom of Form

 

Paper#48154 | Written in 18-Jul-2015

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