Which of the following is not one of the five forces described in Michael Porter's Five Forces Model?

A)	Pressure from substitute products

B)	Threat of exit

C)	Threat of entry

D)	Bargaining power of buyers

DIS stock has returns of 15%, 16%, and 17% during each of the last three years. If one calculates their average return as 16%, what type of average was (most likely) calculated?

A)	arithmetic average

B)

HPR

C)	expected return

D)	geometric average

Geometric return ignores __________, but does account for ________________.

A)	compounding, dollar amounts

B)	dollar amounts, compounding

C)	number of time periods, interest rates

D)	interest rates, time periods

GM stock has an alpha of + 1.0. This means that if the index is up 2.5%, GM stock is _________

A)

up 2.5%

B)

up 3.5%.

C)

down 2.5%

D)

up 1%.

GE stock has a beta of 1.2. This means that if the index is up 1%, it is likely that GE stock is __________

A)

up 1%.

B)

down 1%.

C)	down 1.2%.

D)

up 1.2%.

The world supply of corn is cut in half because of a tragic weather event in North America. A category five tornado fifteen miles wide went back and forth across the states of Kansas, Nebraska, Illinois, Iowa, and Missouri, wiping out the entire corn crop. (The storm lasted five days...and amazingly, no one was hurt and no buildings were damaged). Meanwhile, storage facilities that hold corn were found to be infested with weevils, ruining all of the stored corn in the United States. The resulting series of events in the US economy can best be attributed to a ______________.

A)	demand-side shock to the economy

B)	defensive shock to the economy.

C)	supply-side shock to the economy.

D)	cyclical shock to the economy.

Dollar weighted returns are essentially the same as _______________

A)

IRR

B)

NPV

C)

HPR.

D)	Arithmetic returns.

CAG has an R-Squared value of 5. This means that ________________________.

A)	CAG is not affected very much by movements in the index.

B)	CAG is up 5%.

C)	CAG is highly correlated with the index.

D)	CAG is outperforming the index by 5%.

AAPL has a Sharpe ratio of 2.5. GM has a Sharpe ratio of 1.2. Which of the following statements is most correct?

A)	AAPL has higher returns given the level of risk (or higher returns per unit of risk).

B)	AAPL has higher returns than GM.

C)	GM has higher returns than AAPL.

D)	GM's returns are 1.2% above the index, while AAPL's returns are 2.5% above the index.

Compared to variance, the more accurate (and widely accepted) measure of risk in the stock market is _________

A)	standard deviation.

B)	Sharpe ratio.

C)

variance.

D)

alpha.