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QUESTION 25 Investors trade previously issued securities in the O primary secondary primary and secondary derivatives QUESTION 26 If a portfolio had a return of 12%, the risk free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the Sharpe measure would be O 0.32 0.25 0.12. 0.16 0.04 QUESTION 19 You invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.20 and a T-bill with a rate of return of What percentages of your money must be invested in the risk free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 0.087 50% and 50% Cannot be determined 60% and 40% 40% and 60% 30% and 70% QUESTION 20 A reward-to-volatility ratio is useful in None of the options are correct. analyzing returns on variable-rate bonds understanding how returns increase relative to risk increases assessing the effects of inflation QUESTION 15 A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15. The risk-free rate is 6%. An investor has the following uolity function: U - EV) - W2152. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset? 8 QUESTION 16 If an investment provides a 2.1% return quarterly, its effective annual rate is 8.4% 2.1%. 8.56 8.67% QUESTION 11 Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets and T-Bills. The information below refers to these assets. ERP) 12.00% Standard Deviation of P 7.20% T-Bill rate 3.6096 Proportion of Complete Portfolio in P 80 % Proportion of Complete Portfolio in T-Bills 20 56 Composition of P: Stock A 40.00 Stock B 25.00 * Stock 35.00 Total 100.00 What are the proportions of stocks A, B, and respectively, in Bo's complete portfolio? 324, 20%, 20% 20M, 12.5M. 17.5% B%, 5% 7% 40%, 25%, 35% 16, 104, 14 QUESTION 11 Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. E(Rp) 12.00% Standard Deviation of P 7,20 % T-Bill rate 3.60% Proportion of Complete Portfolio in P 80 9 Proportion of Complete Portfolio in T-Bills 20 * Composition of P: Stock A 40.00 Stock B 25.00 Stock C 35.00 % Total 100.00 What are the proportions of stocks A, B, and respectively, in os complete portfolio? 32%, 20%,28 20%, 12.5%, 17.5% 8.5.2 40%, 25%, 95% 16.10.14 QUESTIONS 4 points Coca Cola stock has the following probability distribution of expected prices one year from now. State Probability Price 1 25 550 2 40 % 560 3 35 * $ 70 If you buy Coca Cola today for $55 and it will pay a dividend during the year of seper share, what is your expected holding period return on Coca Cola? (61-554/55x 100-18.15 3 points QUESTION 6 An investor purchased a bond 45 days ago for $985. He received 515 in interest and sold the bond for 1980. What is the holde period return on his investment? 01.02% 1.92 0.50 Question Completion Status: QUESTIONS 4 points Coca Cola stock has the following probability distribution of expected prices one year from now. State Probability Price 25% $50 40 % 560 35 * $ 70 1 2 3 you buy Coca Cola today for $55 and it will pay a dividend during the year of s4 per share, whiat is your expected holding period return on Coca Cola (61-554/55x 100-18.18 peints QUESTION 6 An inwestor purchased a bond 45 days ago for 1985. He received 515 in interest and sold the band for $980. What is the heiding period retum on his investment? 1.02 1.92% 0.50 Click Submit to complete this assessment Question 27 You invest $1,000 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.40 and a bill with a rate of return of 0.04 The slope of the capital allocation line formed with the risky asset and the risk free asset is equal to 0.325. 0.407 0.675 Cannot be determined. 0.912 A Moving to another question will save this response. Question 12 Two securities have a covariance of 0.092. If their respective standard deviations are 23% and 31%, what is their correlation coefficiere 0.45 1.29 0.82 0.32 0.95 Save this response Question of 27 Question 9 2 points You are considering investing $1.000 in a bill that pays 0.05 and a risky portfolio A constructed with two risky securities Xand. The weights of Xand Yin Pare 0.60 and 0.40 respectively. X has an expected rate of return of 0.14 and variance of 0.61, and has an expected rate of return of 0.10 and a variance of 0.0081 If you want to form a portfolio with an expected rate of return of 0.90, what percentages of your money must you invest in the Tbill X and respectively. If you keep X and Yin the same proportions to each other as in portfolio 0.25 0.45 0.30 0.19 0.40 0.12 00:12:0.41; 0.27 0.50 0.30 0.20 Cannot be determined. Moving to another question will save this response Ouestion of 2 Questions 2 points Your opinion is that security Chas an expected rate of return of 0.106. It has a beta of 4.1. The risk free rate is 0.04, and the market expected race of return is 0.16 According to the Capital Asset Pricing Model this security is fairly priced overpriced Cannot be determined from data provided underpriced