116、As
an investor assumes more risk and moves upward on the efficient
frontier, the slope of the efficient frontier curve most likely: Select exactly 1 answer(s) from the following: A. increases and expected return per unit of risk increases. B. increases and expected return per unit of risk decreases. C. decreases and expected return per unit of risk increases. D. decreases and expected return per unit of risk decreases.
117、Which
of the following statements about the relation between covariance and
correlation is least accurate? If the covariance of returns between two
assets is positive, the correlation coefficient for those two assets: Select exactly 1 answer(s) from the following: A. must also be positive. B. could be a negative number. C. could indicate a strong positive relation if both return series were stable. D. could indicate a weak positive relation if both return series were volatile.
118、The
risk-free rate of return is 3%, the market risk premium is 9%, and the
market is in equilibrium. If a common stock with a beta of 1.2 is
properly valued, then the stock's estimated rate of return is closest
to: Select exactly 1 answer(s) from the following: A. 10.2%. B. 10.8%. C. 13.8%. D. 14.4%.
119、Regarding
an individual's investment policy statement, which of the following is
least appropriate as the investment objective? The portfolio seeks: Select exactly 1 answer(s) from the following: A. current income in the form of dividends and interest. B. 12% annual returns with above-average market risk. C. to match the performance and risk characteristics of the S& 500 Index. D. long-term capital appreciation with market risk comparable to the MSCI EAFE Index.
120、An analyst gathered the following information about a common stock: Probability | Possible Rate of Return | 0.35 | 8% | 0.30 | 10% | 0.25 | 15% | 0.10 | 20% |
The expected return and expected standard deviation of returns, respectively, for the common stock are closest to: Select exactly 1 answer(s) from the following: A. 12% and 3.9%. B. 12% and 15.3%. C. 14% and 3.9%. D. 14% and 15.3%. | 
发表于 2008-11-13 06:06
| 