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a)Which of the following statements about the Australian Prudential Regulation Authority is NOT correct:

Select one:

A. It enforces the Corporations Law to promote honesty and fairness in companies and markets

B. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies and some superannuation funds.

C. It oversees Authorised Deposit-taking Institutions

D. It concerns itself with the financial stability of, and competition in, the financial system.

b)In the next year, you expect Westpac shares have a 20% chance of earning 10 percent return, a 50% chance of earning only 2 percent and a 30% chance of earning -10 percent. Based on this, what is the standard deviation of Westpac's expected return?

Select one:

A. 7.211%

B. 0.520%

C. 0.000%

D. 5.311%

c)The return on a risky asset that is anticipated in the future is called the:

Select one:

A. Expected return.

B. Holding period return.

C. Systematic return.

D. Capital return

d)The Reserve Bank of Australia:

Select one:

A. Implements monetary policy

B. Implements fiscal policy

C. Is lender of last resort to large troubled companies in Australia

D. All of the above

e)You invested $13,000 in a portfolio with an expected return of 1.3 per cent and $18,000 in a portfolio with an expected return of 12.8 per cent. The expected return of the combined portfolio is (as a percentage to two decimal places eg 2.881% is 2.88))

Select one:

a. 7.98%

b. 8.19%

c. 1.80%

d. 1.77%

f)A certain company pays dividends based on the overall state of the economy. You think that the economy has three possible states: boom, level, and slump. If the economy is booming, you will receive a $10 dividend. A normal economy will result in a $5 dividend, and a slumping economy will only pay a $2 dividend. Assuming that each state of the economy has a one in three chance of occurring, what is the expected value of your dividend?

Select one:

A. $5.67

B. $3.30

C. $15.00

D. $17.00