1. Calculate the expected returns of your portfolio

   Stock	Invest	Exp Ret
   A	$358	8.1%
   B	$954	18.1%
   C	$1,383	26%

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 12.345% then enter as 12.35 in the answer box.

1 points

QUESTION 2

1. Suppose a stock had an initial price of $64.29 per share, paid a dividend of $5 per share during the year, and had an ending share price of $94.19. What are the dollar returns?

   Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 3

1. Suppose the returns forStock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%. Compute the standard deviation of the returns.

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 4

1. You own a portfolio invested 19.2% in Stock A, 19.27% in Stock B, 28.6% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.82, 0.69, 0.94, and 0.91. What is the portfolio beta?

   Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 5

1. Suppose a stock had an initial price of $66.22 per share, paid a dividend of $4.3 per share during the year, and had an ending share price of $84.92. What are the percentage returns?

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 6

1. Calculate the expected returns of your portfolio

   Stock	Invest	Exp Ret
   A	$427	3.6%
   B	$921	16.7%
   C	$330	28.7%

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 12.345% then enter as 12.35 in the answer box.

1 points

QUESTION 7

1. You own a portfolio invested 26.47% in Stock A, 18.59% in Stock B, 22.2% in Stock C, and the remainder in Stock D. The beta of these four stocks are 1.35, 1.33, 0.29, and 1.26. What is the portfolio beta?

   Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 8

1. Suppose a stock had an initial price of $96.73 per share, paid a dividend of $7.3 per share during the year, and had an ending share price of $103.32. What are the percentage returns if you own 25 shares?

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 9

1. A portfolio is invested 23.1% in Stock A, 20.1% in Stock B, and the remainder in Stock C. The expected returns are 15.3%, 24%, and 21.7% respectively. What is the portfolio's expected returns?

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 12.345% then enter as 12.35 in the answer box.

1 points

QUESTION 10

1. Based on the following information, calculate the expected returns:

   	Prob	Return
   Recession	30%	36.4%
   Boom	70%	9.8%

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 12.345% then enter as 12.35 in the answer box.

1 points

QUESTION 11

1. Suppose a stock had an initial price of $60.63 per share, paid a dividend of $4.6 per share during the year, and had an ending share price of $97.82. What are the percentage returns?

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 12

1. Suppose a stock had an initial price of $75.53 per share, paid a dividend of $8 per share during the year, and had an ending share price of $80.82. If you own 277 shares, what are the dollar returns?

   Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 13

1. You have observed the following returns on ABC's stocks over the last five years:

   4.1%, 9%, -7%, 11%, -6.7%

   What is thearithmetic average returns on the stock over this five-year period.

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 14

1. Portfolio diversification eliminates which one of the following?

   Total investment risk

   Portfolio risk premium

   Market risk

   Unsystematic risk

   Reward for bearing risk

1 points

QUESTION 15

1. A $36,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1.29 while the beta of stock B is 0.90. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.58?

   $6,000

   $9,000

   $12,000

   $15,000

   $18,000

1 points

QUESTION 16

1. What is the beta of the following portfolio?

   1.08

   1.14

   1.17

   1.21

   1.23

1 points

QUESTION 17

1. The systematic risk is same as:

   Unique risk

   Diversifiable risk

   Asset-specific risk

   Market risk

   Unsystematic risk

1 points

QUESTION 18

1. You own a portfolio that has $1,900 invested in Stock A and $2,700 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio?

   10.57 percent

   11.14 percent

   11.96 percent

   12.52 percent

   13.07 percent

1 points

QUESTION 19

1. The stock of Billingsley United has a beta of 0.92. The market risk premium is 8.4 percent and the risk-free rate is 3.2 percent. What is the expected return on this stock?

   8.87 percent

   9.69 percent

   10.93 percent

   11.52 percent

   12.01 percent

1 points

QUESTION 20

1. What is the beta of the following portfolio?

   0.98

   1.02

   1.11

   1.14

   1.20

1 points

QUESTION 21

1. Standard deviation measures _____ risk while beta measures _____ risk.

   systematic; unsystematic

   unsystematic; systematic

   total; unsystematic

   total; systematic

   asset-specific; market

1 points

QUESTION 22

1. You own a portfolio of two stocks, A and B. Stock A is valued at $6,540 and has an expected return of 11.2 percent. Stock B has an expected return of 8.1 percent. What is the expected return on the portfolio if the portfolio value is $9,500?

   9.58 percent

   9.62 percent

   9.74 percent

   9.97 percent

   10.23 percent

1 points

QUESTION 23

1. If markets are efficient, the difference between the instrinsic value and the market value of the comapny's security is:

   zero

   positive

   negative

1 points

QUESTION 24

1. Semi-strong-form efficient markets are not weak-form efficient.

   True

   False

1 points

QUESTION 25

1. Suppose the real rate is 3.33% and the nominal rate is 8.28%. Solve for the inflation rate. Use the Fisher Effect equation.

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

Click Save and Submit to save and submit. Click Save All Answers to save all answers.