BUSN 379 Week 5 Quiz

Share on facebook
Share on whatsapp
Share on twitter
Share on pinterest
Share on linkedin
Share on reddit
Share on skype
Share on email

BUSN 379 Week 5 Quiz

 1.Question :(TCO 8) Which one of the following is a correct definition of an Ibbotson and Sinquefield investment category as used to report historical returns in your textbook?
Student Answer: U.S. Treasury bills: 1-year debt securities issued by the U.S. Department of the Treasury
 Small-company stocks: Stocks of the smallest 20 percent of the firms listed on the NYSE
 Large-company stocks: Stocks of the largest 10 percent of the firms listed on the NYSE
 Long-term U.S. government bonds: Bonds issued by the U.S. government with a 30-year maturity

Hi there! Get instant help with . Without paying anything upfront.

 2.Question :(TCO 8) If the financial markets are efficient, then:
Student Answer: stock prices should never change.
 stock prices should only respond to unexpected news and events.
 stock prices should increase or decrease slowly as new events are analyzed and the information is absorbed by the markets.
 stock prices will only change when an event actually occurs, not at the time the event is anticipated.

 

 3.Question :(TCO 8) Which of the following statements is true regarding systematic risk? Select all that apply:
Student Answer:is diversifiable
is the total risk associated with surprise events
it is not project or firm specific
is measured by beta

 

 4.Question :(TCO 8) Assume a project that has the following returns for years 1 to 5: 15%, 4%, -13%, 34%, and 17%. What is the approximate standard deviation of this investment?
Student Answer: 0.03013
 0.1542
 17%
 20%

 

 5.Question :(TCO 8) Assume you are considering investing in two stocks, A & B. Stock A has an expected return of 16% and Stock B has an expected return of 9.5%. Your goal is to create a two-security portfolio that will have an expected return of 12%. If you have $250,000 to invest today, which of the following statements is true?
Student Answer: You would invest more in Stock A than you would invest in Stock B
 You would invest approximately $96,000 in Stock A and $154,000 in Stock B
 You would invest the same amount in each stock
 Regardless of your investment choices, you cannot obtain a return of 12%.

 

 6.Question :(TCO 8) For this exercise, use the information provided for Problem 30 of Chapter 11 (page 375 of your textbook). Assume that the probability of the state of the economy has changed as follows:

The probability of a recession has increased to 30% and the probability for a normal state of economy is now 40%. The market risk premium has increased by 1% as well. What is the standard deviation of Stock I and II respectively?

Student Answer: 12 and 20%
 12.5 and 23%
 1.25 and 2.326%
 Cannot be determined with the information given

 

 7.Question :(TCO 8) For this exercise, use the information provided for Problem 30 of Chapter 11 (page 375 of your textbook). Assume that the probability of the state of the economy has changed as follows:

The probability of a recession has increased to 30% and the probability for a normal state of economy is now 40%. The market risk premium has increased by 1% as well. Which statement is true? Select all that apply:

Student Answer:Stock II has more risk than Stock I
Stock II has less systematic risk than Stock I
Stock I has a higher risk premium than Stock II
Stock I has a greater expected return than Stock II

 

 8.Question :(TCO 8) Which statements are true regarding risk? Select all that apply:
Student Answer:The expected return is usually not the same as the actual return
A key to assessing risk is determining how much risk an investment adds to a portfolio
Some risks cannot be decreased or mitigated by the financial manager.
The higher the risk, the higher the return investors require for the investment
do-my-paper-pay-someone-to-write-my-paper

do you want to boost your grades? yes?

stop thinking we are eager to help you out

Payment Methods

Contact

  • +1 (781) 656-7669
  • writing@devryfinalexams.com
  • Blog
  • Reviews
  • Library
  • Contact
  • About Us
  • How It Works
  • DMCA Policy
  • Refund Policy
  • Cookie Policy
  • Privacy Policy
  • Terms of Services
  • Take My Online Class
  • Do My Homework
  • MyMathLab Answers
  • MyStatLab Answers
  • MyAccountingLab Answers
  • CPM Homework Help
  • Math Homework Help
  • Online Homework Helper
  • Pay To Take Online Class
  • Finance Assignment Help
  • Online Final Exams Help
  • Take WIC Online Class
  • Coursework Writing Service
  • Buy Research Paper
  • Thesis Writing Service
  • Dissertation Writing Service
  • Course Project Help
  • Case Study Help
  • College Paper Writing Service
  • Do My Statistics Homework
  • Essay Writing Service
  • Economics Homework Help
  • Programming Homework Help
  • English Homework Help
  • Online Test Takers
  • Take My Online Quiz
  • Paid Service Online Class Help
  • Help With My Online Class
  • Online Business Class Help
  • Take My Online Lab
  • Algebra Homework Help
  • College Homework Help
  • MBA Assignment Help
  • Disclaimer: The services provided are meant to assist the buyer by providing a guideline and the product provided is intended to be used for research or study purposes.
Scroll to Top