File Name: risk and return multiple choice questions and answers stock.zip
Learn fama french model, theory of risk and return, efficient portfolios test prep for online business administration degree classes. Practice merit scholarships assessment test, online learning theory of risk and return quiz questions for competitive in business majors for online classes business administration. MCQ : The tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as.
Which of the following constraints would most likely appear in the unique needs and preferences. Unique needs and preferences include the prohibition of certain investments.
The investment. Over time, the major source of investment return and risk can most likely be attributed to:. Across al funds, asset. The risk-free interest rate is 5 percent, and the return on market portfolio is 8 percent. A stock with a. There for e the stock is undervalued because its estimated return, given the risk, lies above the SML, i. Specifically within the set of feasible alternative portfolios, several portfolios exist where the returns are. From among the several zero-beta portfolios, you would select one with minimum.
Which of the following statements is least likely to be an assumption about investor behaviour. Investors have utility curves that are a function of expected returns and variance.
Investors maximize one-period expected utility, and their utility curves demonstrate diminishing. In general, which of the following institutions will most likely have a high need for liquidity and a short. A is correct. Banks have a short term horizon and high liquidity needs.
See Exhibit 14, page Which of the following is most likely a part of the feedback step in the portfolio management.
B is correct. Per for mance measurement along with portfolio monitoring and rebalancing is part of the. Relative to an investor with a steeper indifference curve, the optimal portfolio for an investor with a. The following table shows data for the stock of JKU and a market-index. The risk-return relationship lies above the.
A portfolio with equal parts invested in a risk-free asset and a risky portfolio will most likely lie on:. C is correct. A capital allocation line shows possible combinations of a risky portfolio and the risk-free. Factors such as fluctuations in interest rates and changes in industrial production contribute to:. Systematic market-related risk is caused by macroeconomic variables such as interest rate. Unsystematic risk is caused by company-specific. When assessing the per for mance of a single investment fund, the asset allocation decision explains:.
Across all funds. If investors borrow at a rate that exceeds the lending rate, the resulting borrowing. The result is that borrowing portfolios will plot on a line with a flatter slope compared to. Which of the following is not an assumption of the Markowitz model?
This is not an assumption of the Markowitz model, it is an assumption of the Capital Asset. The table below provides a probability distribution of stock returns for shares of Orion Corporation:. The variance of returns for Orion Corporation stock is closest to:. For a retired year-old investor, with moderate risk tolerance and adequate insurance and cash. A moderately risk tolerant retired year-old can structure his or her portfolio so that it. The principal growth is needed because the time horizon is.
Which of the following statements is least accurate? An investor may construct a portfolio located. This statement is incorrect. Portfolio s located on the CML may be constructed by: 1. The least likely reason for constructing an investment policy statement is that it:.
This is not a reason for constructing an investment policy statement. The two reasons are:. An analyst gathered the following in for mation about two common stocks:. The correlation coefficient between returns for the two common stocks is closest to:. According to the CAPM the market portfolio is perfectly positively correlated with all other. All risky assets are included in the market portfolio in proportion to their market. The market portfolio contains only systematic risk since it is completely.
An investment strategy that seeks to grow portfolio value over time through capital gains and. A total return objective is consistent with an investment strategy that seeks to grow. The standard deviation of returns for shares of Oakmont Corporation and Sunrise Corporation are.
If the correlation between the two stocks is 0. With respect to the portfolio management process, asset allocation decisions are made in the:. The key difference between a wrap account and a mutual fund is that in a wrap account the. The real rate of return and risk premium for equities are closest to:. If Investor A has a lower risk aversion coefficient than Investor B, on the capital allocation line, will. Investor B has a higher risk aversion coefficient, there for e a lower risk tolerance and a lower.
A portfolio manager decides to temporarily invest more of a portfolio in equities than the. Tactical asset allocation is the decision to deliberately deviate from the policy exposures to. A correlation matrix of the returns for securities A, B, and C is reported below:.
Assuming that the expected return and the standard deviation of each security are the same, a portfolio. The negative correlation of —0. It represents the return of the. Thus, the slope represents the portion of expected return that. For the same. If the expected market return is 9. Booraem Inc. The expected return, In a strategic asset allocation, assets within a specific asset class are least likely to have:.
In a strategic asset allocation, assets within a specific asset class will have high paired. An analyst gathered the following in for mation about a portfolio comprised of two assets:.
If the correlation of returns for the two assets equals 0. An analyst has gathered monthly returns for two stock indexes A and B:. A completely diversified portfolio will most likely result in the elimination of :. A completely diversified portfolio, such as the market portfolio, will eliminate all unsystematic risk.
Beta is a standardized measure of risk because it relates this covariance to the variance of the market. For an investor borrowing money at the risk-free interest rate to invest in the market portfolio, the. An investor who wants to attain a higher estimated rate of return than the market portfolio may want to. Which of the following types of institutions is most likely to have a long investment time horizon and. Endowments have a long investment time horizon and a high level of risk tolerance.
Based on these data, the money-weighted return or internal rate of return for the investor is closest. Selected in for mation about shares of two companies is provided below:. The standard deviation of returns of the portfolio for med with these two stocks is closest to:. Risk that can be attributed to factor s that impact a company or industry is best described as:.
Risk that is due to company-specific or industry-specific factors is referred to as. A stock has a correlation of 0. The portfolio is: A. Url: www. Answer: B Unique needs and preferences include the prohibition of certain investments. Over time, the major source of investment return and risk can most likely be attributed to: A. A stock with a beta of 0. Page 1 of 18 Berkeley Middle East Inc. The minimum variance zero-beta portfolio most likely has some: A.
Answer: B Specifically within the set of feasible alternative portfolios, several portfolios exist where the returns are completely uncorrelated with the market portfolio; the beta of these portfolios with the market portfolio is zero. From among the several zero-beta portfolios, you would select one with minimum variance.
Concept of risk and return: finance quiz. There are a lot of things that people assess before they decide to invest in a project and this signifies an element of risk of making less money than intended. People take risk in different levels and it is believed that high risk projects bring more return. Do take up the quiz and get to see just how much you know about risk in projects and its relation to rate of return. Search Speak now. Questions All questions 5 questions 6 questions 7 questions 8 questions 9 questions 10 questions 11 questions 12 questions 13 questions 14 questions 15 questions 16 questions 17 questions. Feedback During the Quiz End of Quiz.
Multiple choice questions on risk, return, and capital asset pricing model quiz answers PDF covers MCQ questions on risk and rates of return on Different securities—including common stocks, corporate bonds, government bonds, and.
Which of the following is the variability of return on stocks or portfolios associated with changes in return on the market as a whole? Principles of Accounting. Cost Accounting. Principles of Finance. MCQs 1.
Multiple choice questions Try the following multiple choice questions to test your knowledge of this chapter. When you have finished, click on the 'Submit Answers for Grading' button to get your results. Which one of the following is not a factor identified by APT empirical studies? Which of the following is not an assumption of the APT? Suppose you have 20 stocks, and you want to derive the efficient frontier.
Which of the following constraints would most likely appear in the unique needs and preferences.
Интересно, почему Стратмор его до сих пор не отключил. Ему понадобилось всего несколько мгновений, чтобы принять решение. Фонтейн схватил со стола заседаний трубку внутреннего телефона и набрал номер шифровалки. В трубке послышались короткие гудки. В сердцах он швырнул трубку на рычаг.
Она попыталась вспомнить, что это. Сбои техники в Третьем узле были такой редкостью, что номера ошибок в ее памяти не задерживалось. Сьюзан пролистала справочник и нашла нужный список. 19: ОШИБКА В СИСТЕМНОМ РАЗДЕЛЕ 20: СКАЧОК НАПРЯЖЕНИЯ 21: СБОЙ СИСТЕМЫ ХРАНЕНИЯ ДАННЫХ Наконец она дошла до пункта 22 и, замерев, долго всматривалась в написанное. Потом, озадаченная, снова взглянула на монитор.
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