i need help with qestions 1-15
Question 1 1 pts Kohl's Corp has a beta of 2. and the expected market return is 0.09. In addition, Treasury bills (risk-free asset) are currently yielding 0.03. Find the expected return for Kohl's Corp. 15.00% 15.95% none of the answers is correct 10.95% O 21.90% Question 2 1 pts Which of the following statement is incorrect? A beta of 1 indicates a risk-free security, such as a U.S. Treasury bill. The risk that investors cannot diversify away they cannot diversify away, the risk that is common to all assets, is called systematic or nondiversifiable risk. Most of the answers are correct except one. A beta higher than or lower than 1 tells us that the asset has more or less systematic risk than the market. respectively When beta equals zero and there is no systematic risk, and therefore the expected return equals the risk-free rate. Question 3 ' 1 pts What is the standard deviation given the following information? Probability 25.0% 20.0% 55.0% Possible Returns 24.0% 36.0% 9.0% none of the answers is correct 63.0% 10.9% 56.8% 49.1% Question 4 1 pts Bard C.R. Inc has a beta of 2.67 and the expected market return is 0.12. In addition, Treasury bills (risk- free asset) are currently yielding 0.06. Find the expected return for Bard C.R. Inc. 22.00% O 16.05% O none of the answers is correct O 18.73% O 27.45% Question 5 1 pts What is Linear Technology Corp's coefficient of variation (CV) of possible returns given that the expected return is 13 and variance is .421833? 5.1877 O none of the answers is correct 6.2804 0 4.9960 O 1.5906 Question 6 1 pts Which of the following statement is incorrect? In order to keep the total return of a stock equal to 100 percent, the income component for that stock could be positive or zero With complete diversification, all of the unsystematic risk is eliminated from the portfolio. Most of the answers are correct except one. O A beta of 1 indicates a risk-free security, such as a U.S. Treasury bill Diversified investors face only systematic risk Question 7 1 pts Which of the following statements is correct? Investors require a lower rate of return from riskier assets. Utilizing the fact that values of two or more assets always move in the same direction at the same time in order to increase the risk of a portfolio is called diversification. All the answers are correct. The risk that investors can diversify away, the risk that is common to all assets, is called systematic or nondiversifiable risk O When choosing between two investments that have the same level of risk, investors prefer the investment with the higher return. Question 8 1 pts Which of the following statements is correct? The standard deviation is a measure of systematic risk. O All the answers are correct. In order to keep the total return of a stock equal to 100 percent, the income component for that stock must be zero. The risk that investors can diversify away, the risk that is common to all assets, is called systematic or nondiversifiable risk O When beta equals zero and there is no systematic risk, and therefore the expected return equals the risk-free rate. D Question 9 1 pts Which of the following is the best measure of the systematic risk in a portfolio? O standard deviation O covariance beta none of the answers is correct. O variance D Question 10 1 pts Which of the following statement is incorrect? The standard deviation is a measure of total risk. The greater the risk, the larger the return investors require as compensation for bearing that risk. With complete diversification, all of the systematic risk is eliminated from the portfolio Most of the answers are correct except one. The income component of return for a common stock comes from the cash dividend a firm pays. Question 11 1 pts L-3 Communications Holdings has a beta of 2. and the expected market return is 0.06. In addition, Treasury bills (risk-free asset) are currently yielding 0.06. Find the expected return for L-3 Communications Holdings. O 14.76% O 6.00% O 12.38% O 4.38% none of the answers is correct Question 12 1 pts Which of the following statement is incorrect? o If an asset's price implies that the expected return is greater than that predicted by the CAPM, that asset will plot above the Security Market Line. The coefficient of variation divides the standard deviation of the returns of an asset by the expected rate of return of that asset. Most of the answers are correct except one. The normal distribution is a skewed distribution that is completely described by its correlation coefficient and coefficient of variation If the capital appreciation return from owning a stock is positive, then the total return from owning the same stock cannot be negative. D Question 13 1 pts Which of the following statement is incorrect? If two investments have the same expected return, investors prefer the riskiest alternative. The normal distribution is a symmetric distribution that is completely described by its mean and standard deviation. Most of the answers are correct except one. In order to keep the total return of a stock equal to 100 percent, the income component for that stock could be positive or zero Diversification by holding more than one asset with different risk characteristics can reduce the risk of a portfolio D Question 14 1 pts Sayers purchased a stock with a coefficient of variation equal to 0.125. The expected return on the stock is 20 percent. What is the coefficient of variation for the stock? 0.625000 none of the answers is correct. O 0.000625 0 0.025000 O 0.790500 D Question 15 1 pts If you were to compare the returns of an individual stock to a market index, select the answer below that is most true. The returns of the individual stock will show the same level of variability than those of the market index, if they have the same standard deviation The returns of the individual stock will show more variability than those of the market index. The returns of the individual stock will show less variability than those of the market index. The returns of the individual stock will show the same level of variability than those of the market index, if they have the same beta None of the answers is correct