BFIN FINAL EXAM 2024 QUESTIONS WITH CORRECT ANSWERS
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BFIN
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BFIN
BFIN FINAL EXAM 2024 QUESTIONS WITH CORRECT ANSWERS
The beta of Elsenore, Inc., stock is 1.6, whereas the risk-free rate of return is 8 percent. If the expected return on the market is 15 percent, then what should investors expect as a return on Elsenore?
11.20%
24.00%
32.00%
19.20% - Answer-...
BFIN FINAL EXAM 2024
QUESTIONS WITH
CORRECT ANSWERS
The beta of Elsenore, Inc., stock is 1.6, whereas the risk-free rate of return is 8 percent.
If the expected return on the market is 15 percent, then what should investors expect as
a return on Elsenore?
11.20%
24.00%
32.00%
19.20% - Answer-19.20%
The beta of Ricci Co.'s stock is 3.2, whereas the risk-free rate of return is 9 percent. If
the expected return on the market is 18 percent, then what should investors expect as a
return on on Ricci Co.?
48.60%
37.80%
28.80%
57.60% - Answer-37.80%
The expected return on Karol Co. stock is 16.5 percent. If the risk-free rate is 5 percent
and the beta of Karol Co is 2.3, then what is the risk premium on the market portfolio?
7.5%
10.0%
5.0%
2.5% - Answer-5.0%
Two projects are considered to be independent if
none of these.
selecting one does not affect whether the other is accepted or not.
both selecting one would have no bearing on accepting the other and their cash flows
are unrelated.
their cash flows are unrelated. - Answer-both selecting one would have no bearing on
accepting the other and their cash flows are unrelated.
Which of the following represents a plot of the relation between expected return and
systemic risk?
The variance
The beta coefficient
The covariance of returns line
The security market line - Answer-The security market line
Which of the following is a characteristic of independent projects?
Selecting one would automatically eliminate accepting the other.
The cash flows are unrelated.
, The cash flows are related.
None of these. - Answer-The cash flows are unrelated.
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