Question 1

This is the term for portfolios with the highest return possible for each risk level.

Accepted Answer

A)  efficient portfolios 
B)  modern portfolios 
C)  optimal portfolios 
D)  total portfolios 
A)  efficient portfolios 
B)  modern portfolios 
C)  optimal portfolios 
D)  total portfolios

Question 2

Portfolio Weights If you own 100 shares of Air Line Inc. at $42.50, 250 shares of BuyRite at $53.25, and 350 shares of Motor City at $7.75, what are the portfolio weights of each stock?

Accepted Answer

A)  Air Line = .3333, BuyRite = .3333, MotorCity = .3333 
B)  Air Line = .10, BuyRite = .25, MotorCity = .35 
C)  Air Line = .2096, BuyRite = .6566, MotorCity = .1338 
D)  Air Line = .1429, BuyRite = .3571, MotorCity = .5000 
A)  Air Line = .3333, BuyRite = .3333, MotorCity = .3333 
B)  Air Line = .10, BuyRite = .25, MotorCity = .35 
C)  Air Line = .2096, BuyRite = .6566, MotorCity = .1338 
D)  Air Line = .1429, BuyRite = .3571, MotorCity = .5000

Question 3

Which statement is true?

Accepted Answer

A)  The larger the standard deviation, the lower the total risk. 
B)  The larger the standard deviation, the higher the total risk. 
C)  The larger the standard deviation, the more portfolio risk. 
D)  The standard deviation is not an indication of total risk. 
A)  The larger the standard deviation, the lower the total risk. 
B)  The larger the standard deviation, the higher the total risk. 
C)  The larger the standard deviation, the more portfolio risk. 
D)  The standard deviation is not an indication of total risk.

Question 4

Portfolio Return The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. What is your portfolio percentage return?

Accepted Answer

A)  2.50% 
B)  5.83% 
C)  10.50% 
D)  13.83% 
A)  2.50% 
B)  5.83% 
C)  10.50% 
D)  13.83%

Question 5

This is the concept and procedure for combining securities into a portfolio to minimize risk.

Accepted Answer

A)  firm specific theory 
B)  modern portfolio theory 
C)  optimal portfolio theory 
D)  total portfolio theory 
A)  firm specific theory 
B)  modern portfolio theory 
C)  optimal portfolio theory 
D)  total portfolio theory

Question 6

Portfolio Return Year to date, Company Y had earned a 10.8 percent return. During the same time period, Company R earned 12.20 percent and Company C earned -1.56 percent. If you have a portfolio made up of 45 percent Y, 35 percent R, and 20 percent C, what is your portfolio return?

Accepted Answer

A)  7.15% 
B)  8.19% 
C)  8.82% 
D)  9.44% 
A)  7.15% 
B)  8.19% 
C)  8.82% 
D)  9.44%

Question 7

Average Return The past five monthly returns for K and Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?

Accepted Answer

A)  1.45% 
B)  1.62% 
C)  3.47% 
D)  3.89% 
A)  1.45% 
B)  1.62% 
C)  3.47% 
D)  3.89%

Question 8

Portfolio Weights An investor owns $10,000 of Adobe Systems stock, $15,000 of Dow Chemical, and $25,000 of Office Depot. What are the portfolio weights of each stock?

Accepted Answer

A)  Adobe System = 0.3333, Dow Chemical = 0.3333, Office Depot = 0.3333 
B)  Adobe System = 0.2, Dow Chemical = 0.3, Office Depot = 0.5 
C)  Adobe System = 0.3, Dow Chemical = 0.2, Office Depot = 0.5 
D)  Adobe System = 0.2667, Dow Chemical = 0.3333, Office Depot = 0.4 
A)  Adobe System = 0.3333, Dow Chemical = 0.3333, Office Depot = 0.3333 
B)  Adobe System = 0.2, Dow Chemical = 0.3, Office Depot = 0.5 
C)  Adobe System = 0.3, Dow Chemical = 0.2, Office Depot = 0.5 
D)  Adobe System = 0.2667, Dow Chemical = 0.3333, Office Depot = 0.4

Question 9

Which of the following is correct?

Accepted Answer

A)  Total risk is measured by the standard deviation. 
B)  There is a positive relationship between risk and return. 
C)  If you observe a high variability in a stock's returns you can infer that the stock is very risky. 
D)  All of these statements are correct. 
A)  Total risk is measured by the standard deviation. 
B)  There is a positive relationship between risk and return. 
C)  If you observe a high variability in a stock's returns you can infer that the stock is very risky. 
D)  All of these statements are correct.

Question 10

Investment Return WayCo stock was $75 per share at the end of last year. Since then, it paid a $3 per share dividend last year. The stock price is currently $70. If you owned 200 shares of WayCo, what was your percent return?

Accepted Answer

A)  -6.67% 
B)  -2.67% 
C)  4.00% 
D)  4.29% 
A)  -6.67% 
B)  -2.67% 
C)  4.00% 
D)  4.29%

Question 11

Average Return The past five monthly returns for PG Company are 3.25 percent, -1.45 percent, 4.35 percent, 6.49 percent, and 3.75 percent. What is the average monthly return?

Accepted Answer

A)  1.366% 
B)  1.608% 
C)  3.278% 
D)  3.858% 
A)  1.366% 
B)  1.608% 
C)  3.278% 
D)  3.858%

Question 12

Standard Deviation The standard deviation of the past five monthly returns for K and Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?

Accepted Answer

A)  1.45% 
B)  1.62% 
C)  3.47% 
D)  3.76% 
A)  1.45% 
B)  1.62% 
C)  3.47% 
D)  3.76%

Question 13

Which of the following is the correct ranking from least risky to most risky?

Accepted Answer

A)  Long-term Treasury bonds, Stocks, Treasury Bills 
B)  Treasury Bills, Long-term Treasury Bonds, Stocks 
C)  Stocks, Long-term Treasury Bond, Treasury Bills 
D)  Stocks, Treasury Bills, Long-term Treasury Bonds 
A)  Long-term Treasury bonds, Stocks, Treasury Bills 
B)  Treasury Bills, Long-term Treasury Bonds, Stocks 
C)  Stocks, Long-term Treasury Bond, Treasury Bills 
D)  Stocks, Treasury Bills, Long-term Treasury Bonds

This is the term for portfolios with the highest return possible for each risk level.

Portfolio Weights If you own 100 shares of Air Line Inc. at $42.50, 250 shares of BuyRite at $53.25, and 350 shares of Motor City at $7.75, what are the portfolio weights of each stock?

Which statement is true?

Portfolio Return The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. What is your portfolio percentage return?

This is the concept and procedure for combining securities into a portfolio to minimize risk.

Portfolio Return Year to date, Company Y had earned a 10.8 percent return. During the same time period, Company R earned 12.20 percent and Company C earned -1.56 percent. If you have a portfolio made up of 45 percent Y, 35 percent R, and 20 percent C, what is your portfolio return?

Average Return The past five monthly returns for K and Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?

Portfolio Weights An investor owns $10,000 of Adobe Systems stock, $15,000 of Dow Chemical, and $25,000 of Office Depot. What are the portfolio weights of each stock?

Which of the following is correct?

Investment Return WayCo stock was $75 per share at the end of last year. Since then, it paid a $3 per share dividend last year. The stock price is currently $70. If you owned 200 shares of WayCo, what was your percent return?

Average Return The past five monthly returns for PG Company are 3.25 percent, -1.45 percent, 4.35 percent, 6.49 percent, and 3.75 percent. What is the average monthly return?

Standard Deviation The standard deviation of the past five monthly returns for K and Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?

Which of the following is the correct ranking from least risky to most risky?

Introduction to Financial Management

Reviewing Financial Statements

Analyzing Financial Statements

Time Value of Money 1: Analyzing Single Cash Flows

Time Value of Money 2: Analyzing Annuity Cash Flows

Understanding Financial Markets and Institutions

Valuing Bonds

Valuing Stocks

Estimating Risk and Return

Calculating the Cost of Capital

Estimating Cash Flows on Capital Budgeting Projects

Weighing Net Present Value and Other Capital Budgeting Criteria

Working Capital Management and Policies

Financial Planning and Forecasting

Assessing Long-Term Debt, Equity, and Capital Structure

Sharing Firm Wealth: Dividends, Share Repurchases, and Other Payouts

Issuing Capital and the Investment Banking Process

International Corporate Finance

Mergers and Acquisitions and Financial Distress

Filters

Exam 9: Characterizing Risk and Return

This is the term for portfolios with the highest return possible for each risk level.

Portfolio Weights If you own 100 shares of Air Line Inc. at $42.50, 250 shares of BuyRite at $53.25, and 350 shares of Motor City at $7.75, what are the portfolio weights of each stock?

Which statement is true?

Portfolio Return The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. What is your portfolio percentage return?

This is the concept and procedure for combining securities into a portfolio to minimize risk.

Portfolio Return Year to date, Company Y had earned a 10.8 percent return. During the same time period, Company R earned 12.20 percent and Company C earned -1.56 percent. If you have a portfolio made up of 45 percent Y, 35 percent R, and 20 percent C, what is your portfolio return?

Average Return The past five monthly returns for K and Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?

Portfolio Weights An investor owns $10,000 of Adobe Systems stock, $15,000 of Dow Chemical, and $25,000 of Office Depot. What are the portfolio weights of each stock?

Which of the following is correct?

Investment Return WayCo stock was $75 per share at the end of last year. Since then, it paid a $3 per share dividend last year. The stock price is currently $70. If you owned 200 shares of WayCo, what was your percent return?

Average Return The past five monthly returns for PG Company are 3.25 percent, -1.45 percent, 4.35 percent, 6.49 percent, and 3.75 percent. What is the average monthly return?

Standard Deviation The standard deviation of the past five monthly returns for K and Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?

Which of the following is the correct ranking from least risky to most risky?

Introduction to Financial Management

Reviewing Financial Statements

Analyzing Financial Statements

Time Value of Money 1: Analyzing Single Cash Flows

Time Value of Money 2: Analyzing Annuity Cash Flows

Understanding Financial Markets and Institutions

Valuing Bonds

Valuing Stocks

Estimating Risk and Return

Calculating the Cost of Capital

Estimating Cash Flows on Capital Budgeting Projects

Weighing Net Present Value and Other Capital Budgeting Criteria

Working Capital Management and Policies

Financial Planning and Forecasting

Assessing Long-Term Debt, Equity, and Capital Structure

Sharing Firm Wealth: Dividends, Share Repurchases, and Other Payouts

Issuing Capital and the Investment Banking Process

International Corporate Finance

Mergers and Acquisitions and Financial Distress

Filters