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dears, would appreciate of you could please answer the above questions. many thanks. here you go 10. The returns on the stock of DEF and

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dears, would appreciate of you could please answer the above questions. many thanks.
image text in transcribed
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here you go
10. The returns on the stock of DEF and GHT companies over a 4 year period are shown below: Year DEP GHI 12% 9% -5% 9% 13% From this limited data you should conclude that the covariance equal Select one: A. 0.53 B. 0.0214% C.0.53% D. 0.0214 11 - Systematic risks Select one: A. can be eliminated by investing in a variety of economic sectors. B. are unique to certain types of investment. C. result from random firm-specific events. D. are forces that affect all investment categories 12-DMC3 Inc. will pay no dividend for 2016,2017 or 2018. DMC3 generally pay dividends $1.50. However, at the end of 2019, it will pay a dividend which is expected grow at 4% per year. The required rate of return is 10%. The intrinsic value of DMC3 shares is (assume you are at the beginning of 2016) Select one: A. 26.00 B. $21.48 C. $24.91. D. S34.61 13- Correlation is a measure of the relationship between two series of numbers. Select one: Truc False 14-Coefficients of correlation range from a maximum of 10 to a minimum of 10 Select one: True False 1. Over the past 4 years, the annual rates of retum on stock of Brown & Wamen Inc. have been -2% 4% 14% and 6%, respectively, over the past four years. Compute the standard deviation of these returns 2. Christopher invests 5400 today at 4% this investment after four years? of retam which is compounded annually. What is the future value of B.$842 C. $416 3- The time value of money concept best supports the idea of Select one: Ab latie than ever. Baird in hand is worth two in the bush. C. H th. D. good things come to those who wait 4- The present value of $10.000 disco per year and received at the end of 5 years is A. SIO 000/125 B. 510.000 1.055 C. 510.000 (105) D. 100X1055 S en purchased ABC Wock 500 per share and DEF och 535 hare on the wameday in 2015. Exactly months later, the ABC stock is worth $42.00 per share and has paid divided while the DEF sock is worth 536 per share and has paid 2 quarterly dividends of 500 eachThe holding produse A. ABC 5% and DEF 20% B. ABC 5% and DEF 5.7% C. ABC, 52.00 and DEF 52.00 D. The holding period t o be determined because we do not know the discusime 6- The expected rate of return and standard deviations, respectively for four stocks we given below ABC 94,3% CDE 11%, FGH 12,8% UK 14%, 10% Which stock is clarly least desirable! Select one BFGH D. ABC 7. Most investors are risk-avene, which means they Select one: A. gain satisfaction from the excitement of risk B. invest only in goverment insured securities. C. require an increase in return for any increase in risk D. kopt any financial risk est armount of risk? 8. Each of the following investments produces the same rate of return. Which one has the r Select one: A investment with a standard deviation of 10% B. investment A with a standard deviation of 4% C. investment B with a standard deviation of 12% D. investment with a standard deviation of 8% 9. An investment produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past four year What is the sample) Mandard deviation of these returns? Select one A 3.6% BJ2% C.2.7% D. 3.8% 10- The returns on the stock of DEF and GHI companies over a 4 year period are shown below: Year DEFGHI 8% 11% 12% 9% -5% 9% 13% From this limited data you should conclude that the covariance equal Select one: A. 0.53 B. 0.0214% C. 0.53% D. 0.0214 11- Systematic risks Select one: A. can be eliminated by investing in a variety of economic sectors. B. are unique to certain types of investment. C. result from random firm-specific events. D. are forces that affect all investment categories. 12. DMC3 Inc. will pay no dividend for 2016,2017 or 2018. DMC3 generally pay dividends $1.50. However, at the end of 2019, it will pay a dividend which is expected grow at 4% per year. The required rate of return is 10%. The intrinsic value of DMC3 shares is (assume you are at the beginning of 2016) Select one: A $26.00 B. $21.48. C. $24.91. D. $34.61. 13- Correlation is a measure of the relationship between two series of numbers. Select one: True False 14. Coefficients of correlation range from a maximum of +10 to a minimum of 10 Select one: True False

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