Question 1: Consider the following covariances between securities:

	Microsoft	Wal-Mart
Microsoft	0.2420	0.1277
Wal-Mart	0.1277	0.1413

The variance on a portfolio that is made up of a $6,000 investment in Microsoft stock and a $4,000 investment in Wal-Mart stock is closest to:

Options de la question 2 :

	0.252
	0.414
	0.017
	0.171
	None of the above

Question 2 : The amount of risk that will remain in a portfolio depends on the degree to which the stocks are exposed to:

	independent risks
	diversifiable risks
	common risks
	idiosyncratic risks
	None of the above

Question 3 : A portfolio is efficient if and only if the expected return of every available security equals its:

	average return
	weighted average return
	realized return
	required return
	None of the above

Question 4: Sisyphean Industries is seeking to raise capital from a large group of investors to fund a new project. Suppose that the efficient portfolio has an expected return of 14% and a volatility of 20%. Sisyphean's new project is expected to have a volatility of 40% and a 70% correlation with the efficient portfolio. The risk-free rate is 4%. The required return for Sisyphean's new project is closest to:

Options de la question 10 :

	24%
	14%
	18%
	10%
	None of the above