30 câu hỏi
An investment provides a 1.25% return quarterly, its effective annual rate is
4.02%.
5.23%.
4.04%.
5.09%.
2.61%
An investor purchased a bond 45 days ago for \$985. He received \$15 in interest and sold the bond for \$980. What is the holding-period return on his investment?
0.01%
1.52%
0.50%
1.92%
None of the above answers are correct
If a portfolio had a return of 10%, the risk free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the risk premium would be_____.
35%
6%
14%
21%
29%
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 risk premium would be____.
29%
16%
21%
37%
8%
If a portfolio had a return of 15%, the risk free asset return was 3%, and the standard deviation of the portfolio's excess returns was 34%, the risk premium would be____.
49%
18%
31%
12%
29%
If a portfolio had a return of 8%, the risk free asset return was 3%, and the standard deviation of the portfolio's excess returns was 20%, the Sharpe measure would be______.
0.20
0.08
0.03
0.11
0.25
The holding-period return (HPR) for a stock is equal to____
the real yield minus the inflation rate.
the capital gains yield minus the tax rate.
the dividend yield plus the capital gains yield.
the nominal yield minus the real yield.
the capital gains yield minus the dividend yield.
The holding-period return (HPR) on a share of stock is equal to
the capital gain yield during the period, plus the inflation rate.
the change in stock price.
the dividend yield, plus the risk premium.
the capital gain yield during the period, plus the dividend yield.
the current yield, plus the dividend yield.
The risk premium for common stocks
cannot be zero, for investors would be unwilling to invest in common stocks.
cannot be zero, for investors would be unwilling to invest in common stocks and is negative, as common stocks are risky.
cannot be zero, for investors would be unwilling to invest in common stocks and must always be positive, in theory.
must always be positive, in theory.
is negative, as common stocks are risky
Toyota stock has the following probability distribution of expected prices one year from now: State of the economy Probability Price Boom 0.25 \$50 Normal Growth 0.40 \$60 Recession 0.35 \$70 If you buy Toyota today for \$55 and it will pay a dividend during the year of \$4 per share, what is your expected holding-period return on Toyota?
17.72%
16.83%
17.91%
18.18%
18.89%
When comparing investments with different horizons the_______provides the more accurate comparison.
geometric return
effective annual rate
arithmetic average
average annual return
historical annual average
Which of the following determine(s) the level of real interest rates? I) The supply of savings by households and business firms; II) The demand for investment funds; III) The government's net supply and/or demand for funds
II only
III only
I and II only
I only
I, II, and III
Which of the following measures of risk best highlights the potential loss from extreme negative returns?
Standard deviation
Upper partial standard deviation
Variance
Value at Risk (VaR)
Sharpe measure
Which of the following statement(s) is (are) true?
I) The real rate of interest is determined by the supply and demand for funds;
II) The real rate of interest is determined by the expected rate of inflation;
III) The real rate of interest can be affected by actions of the Fed;
IV) The real rate of interest is equal to the nominal interest rate plus the expected rate of inflation.
II and III only.
I and III only.
III and IV only.
I and II only.
You have been given this probability distribution for the holding- period return for KMP stock:
Stock of the Economy Probability HPR Boom 0.30 18 %
Normal growth 0.50 12 %
Recession 0.20 5 %
What is the expected holding-period return for KMP stock?
10.40%
10.88%
11.54%
11.63%
9.32%
You have been given this probability distribution for the holding- period return for KMP stock:
Stock of the Economy Probability HPR Boom 0.30 18 %
Normal growth 0.50 12 %
Recession 0.20 5 %
What is the expected standard deviation for KMP stock?
7.25%
8.13%
7.79%
6.91%
8.85%
You have been given this probability distribution for the holding- period return for KMP stock:
Stock of the Economy Probability HPR
Boom 0.30 18 %
Normal growth 0.50 12 %
Recession 0.20 5 %
What is the expected variance for KMP stock?
69.96%
63.72%
66.04%
78.45%
77.04%
You have been given this probability distribution for the holding- period return for Cheese, Inc stock: State of the economy Probability HPR Boom 0.20 24% Normal Growth 0.45 15% Recession 0.35 8% Assuming that the expected return on Cheese's stock is 14.35%, what is the standard deviation of these returns?
5.74%
4.72%
4.38%
6.67%
6.30%
You purchase a share of Boeing stock for \$90. One year later, after receiving a dividend of \$3, you sell the stock for \$92. What was your holding-period return?
4.44%
5.56%
2.22%
3.33%
5.91%
You purchased a share of stock for \$12. One year later you received \$0.25 as a dividend and sold the share for \$12.92. What was your holding-period return?
11.25%
10.65%
9.75%
11.75%
8.46%
You purchased a share of stock for \$20. One year later you received \$1 as a dividend and sold the share for \$29. What was your holding- period return?
45%
5%
50%
32%
40%
A fair game____
is a risky investment with a zero risk premium.
will not be undertaken by a risk-averse investor and is a risky investment with a zero risk premium.
will not be undertaken by a risk-averse investor.
is a riskless investment.
will not be undertaken by a risk-averse investor and is a riskless investment
A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15. The risk-free rate is 6 percent. An investor has the following utility function: U = E(r) − (A/2)s2. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset?
5
6
7
8
1
According to the mean-variance criterion, which one of the following investments dominates all others?
E(r) = 0.10; Variance = 0.25
E(r) = 0.15; Variance = 0.20
E(r) = 0.12; Variance = 0.35
E(r) = 0.10; Variance = 0.20
E(r) = 0.15; Variance = 0.25
Assume an investor with the following utility function: U = E(r) − 3/2(s2). To maximize her expected utility, she would choose the asset with an expected rate of return of________and a standard deviation of_____, respectively.
12%; 20%
10%; 15%
8%; 10%
10%; 12%
10%; 10%
Consider a risky portfolio, A, with an expected rate of return of 0.15 and a standard deviation of 0.15, that lies on a given indifference curve. Which one of the following portfolios might lie on the same indifference curve?
E(r) = 0.20; Standard deviation = 0.15
E(r) = 0.15; Standard deviation = 0.10
E(r) = 0.10; Standard deviation = 0.10
E(r) = 0.15; Standard deviation = 0.20
E(r) = 0.10; Standard deviation = 0.20
Elias is a risk-averse investor. David is a less risk-averse investor than Elias. Therefore,
for the same return, David tolerates higher risk than Elias.
for the same risk, Elias requires a lower rate of return than David.
cannot be determined.
for the same return, Elias tolerates higher risk than David.
for the same risk, David requires a higher rate of return than Elias
In a return-standard deviation space, which of the following statements is (are) true for risk-averse investors? (The vertical and horizontal lines are referred to as the expected return-axis and the standard deviation-axis, respectively.) I) An investor's own indifference curves might intersect; II) Indifference curves have negative slopes; III) In a set of indifference curves, the highest offers the greatest utility; IV) Indifference curves of two investors might intersect.
III and IV only
II and III only
II and IV only
I and II only
I and IV only
In the mean-standard deviation graph an indifference curve has a ______ slope.
positive
northeast
negative
cannot be determined
zero
In the mean-standard deviation graph, which one of the following statements is true regarding the indifference curve of a risk-averse investor?
It connects portfolios that offer increasing utilities according to returns and standard deviations.
It is the locus of portfolios that have the same standard deviations and different rates of return.
It is irrelevant to making a decision of what portfolio would best suit the investor.
It is the locus of portfolios that offer the same utility according to returns and standard deviations.
It is the locus of portfolios that have the same expected rates of return and different standard deviations