Here is the questions
The market price of The Harvind Company's stock is most apt to be affected by which one of these events? Multiple Choice eBook O 25 percent increase in interest rates, just as expected The sudden death of Harvind's CEO References An increase in Harvind's annual dividend by the same percentage as last year's increase The completion of Harvind's new distribution center, right on schedule 0000 An increase in Harvind's payroll costs, in line with current ination Over time. the unexpected return on a company's stock is expected to equal 0.5 points Multiple Choice eBook zero. the riskfree rate. References the company's average rate of return. the market risk premium. the average return on the overall market 0000 RETE FENCES Which one of the following is an example of systematic risk? Multiple Choice O 0000 A poorly managed company suddenly goes out of business due to slow sales. An efficient company reduces its work force and automates several jobs. A key company employee suddenly resigns and accepts employment with a competitor. A well respected chairperson of the Federal Reserve suddenly resigns. An unpopular president of a rm suddenly resigns. 6 Well-diversified portfolios have negligible 0.5 points Multiple Choice eBook O systematic risks. Print O unsystematic risks. References O expected returns. O variances. O market risks.7 The primary purpose of portfolio diversification is to 0.5 points Multiple Choice eBook O increase returns and risks. Print O eliminate all risks. References O eliminate security-specific risk. O lower both returns and risks. O eliminate systematic risk.8 Systematic risk is measured by 0.5 points Multiple Choice eBook O beta. Print O the arithmetic average. References O the geometric average. O covariance. O standard deviation.The risk of an individual security that will be compensated by the market depends upon the Multiple Choice eBook 0 standard deviation of that security. covariance of that security with the market References expected rate of return on that security. security's historical variance. industry most associated with that security. 0000 10 Adeago purchased a stock that is expected to earn 10.5 percent in a booming economy, 2 percent in a normal economy. and lose 4.5 percent in a recessionary economy. The probabilities of a boom, a normal economy, and a recession are 59, 26, and 15 percent, respectively. What is Adeago's expected rate of return on this stock? 0.5 points Multiple Choice Book O 7.39% Print References O -3.66% O -2.17% O 6.04% O 2.67%0.5 points References The capital market line Multiple Choice O 0000 assumes investors can borrow, but not lend, at the riskfree rate. depicts the highest rate of return for every level of risk given only a single portfolio of risky assets. intersects its graph at the origin and is linear in nature. intersects the vertical axis at the riskfree rate. intersects the risky portfolio at that portfolio's lowest risk point. The standard deviation of a risk-free asset is 0.5 points Multiple Choice eBook O O . Print O - 1 . References O +1. O between 0 and -1. O between 0 and +1
