1.

Far Horizon Journeys has an expected return of 9.70%,the risk-free rate is 0.90%,and the market risk premium is 8.35%.Far Horizon's beta is closest to:

A.1.05.

B.1.18.

C.1.30.

2.

An investor whose portfolio is well diversified is subject to:

A.both systematic risk and non-systematic risk.

B.systematic risk.

C.non-systematic risk.

3.

Max Guldenstern, a stock analyst for HiAlpha Securities, is estimating returns for Elsinor Realty. Given the following information, the expected return for Elsinor is closest to:

ScenarioProbabilityElsinorBoom15%9.00%Neutral35%4.80%Bust50%-12.00%

A.0.60%.

B.-2.97%.

C.0.09%

4.

Two assets, Q & R, each have a standard deviation of 10%. Asset Q's expected return is 8.5% and Asset R's expected return is 7.9%. A rational investor will choose:

A.Asset R.

B.Asset Q.

C.Either asset R or asset Q.

5.

Digitech'sstock has an average expected return of 8.70% and a standard deviation of 11.50%.The probability of earning greater than 31.7% is closest to:

A.5%

B.2.5%

C.95%