Question 1 1 pts Risky securities have higher average returns than riskless securities. O True O False Question 2 1 pts Historical information about capital markets is useful for drawing conclusions about the relationship between risk and return. O True O False Question 3 1 pts The greater the standard deviation, the lower the risk. O True O False Question 4 1 pts The standard deviation measures the volatility of a security's returns. True False Question 5 1 pts The larger the variance, the greater the risk of the investment. O True O False Question 6 1 pts The standard deviation can be negative, positive, or equal to zero. True O False Question 7 1 pts You purchased 200 shares of preferred stock on January 1, 2002 for $42.27 per share. The stock pays an annual dividend of $7 per share. On December 31, 2002 the market price is $46.88 per share. What is your total dollar return for the year? O $922 O $2,322 O $1,400 O $2,678 O $478 U Question 8 1 pts You purchased 500 shares of a stock at a price of $22.50 per share. One year later, the shares sold for $21 each. At that end of the year, a $1.50 per share dividend was paid. What is the total percentage return for the investment? O 0.0% 0 -7.1% O 7.1% 0 -6.7% O 6.7% Question 9 1 pts Calculate the variance of an investment with five year returns of 10%, 6%, 4%, 2% and (10%). O (1.57%) 0 2.57% O 1.57% 0 (0.57%) O 0.57% Question 10 1 pts Calculate the standard deviation of an investment with five year returns of 15%, 10%, 5%, (5%) and (10%). O 9.37% O 8.37% O 11.37% O 12.37% O 10.37%