1. Rank the following from Highest to Lowest by Risk as measured by the Historical Standard Deviation.

Treasury Bills

Long Term Bonds

Tech Stocks (NASDAQ)

Broad Market Index (Wilshire 5000)

2. Which of the following statements are true?

A high risk stock has a beta greater than 1

A high risk stock has a beta less than 1

The Wilshire 5000 has a beta close to 1

A bank account has a beta of 0

3. Which of the following asset classes have significantly out performed inflation as measure by the Consumer Price Index over the last 100 years?

Corporate Bonds

Large Stocks

Long Term Government Bonds

Treasury Bills

Gold

4. Rank the following from highest to lowest by historical rate of return

Large Stocks (S&P 500)1234

Small Stocks (Russell 2000)

Gold

Long-Term Bonds

5. Milo Corporation has a Beta of 0.9. The U.S. government T-Bill is expected to yield 0.02, and the S&P 500 is expected to yield 0.11 in the near future. What is Milo's required rate of return?