100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Exam (elaborations) FIN 605 (FIN605) Quiz 3 Questions & Answers. $10.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. Northern Kentucky University
  4.  
  5. FIN 605 (FIN605)

Exam (elaborations)

Exam (elaborations) FIN 605 (FIN605) Quiz 3 Questions & Answers.
 4 views  0 purchase

Quiz 3 Investors generally are considered to be a risk ___ because they expect to be compensated for assuming risk.  Averse  Seekers  Adverse  Takers Dana has a portfolio of 8 securities, each with a market value of $5,000. The current beta of the portfolio is 1.28 and the beta ...

[Show more]

Preview 1 out of 4  pages

Document information

  • September 18, 2024
  • 4
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

All documents for this subject (5)

Seller

avatar-seller
Topscorer

Reviews received

Content preview

Quiz 3
Investors generally are considered to be a risk ___ because they expect to be
compensated for assuming risk.
 Averse
 Seekers
 Adverse
 Takers
Dana has a portfolio of 8 securities, each with a market value of $5,000. The current
beta of the portfolio is 1.28 and the beta of the riskiest security is 1.75. Dana wishes
to reduce her portfolio beta to 1.15 by selling the riskiest security and replacing it
with another security with a lower beta. What must be the beta of the replacement
security?
 1.21
 1.62
 0.91
 0.73
Beta is defined as:
 A measure of volatility of a security’s returns relative to the returns of a
broad-based market portfolio of securities.
 The ratio of the variance of market returns to the covariance of returns on a
security with the market
 The inverse of the slop of the security regression line
 All of the above
A beta value of 0.5 for a security indicates
 The security has below-average systematic risk
 The security has average systematic risk
 The security has no unsystematic risk
 The security has above-average systematic risk
The risk-free rate of return is 5.51 percent, based on an expected inflation premium
of 2.54 percent. The expected return on the market is 12.8 percent. What is the
required rate of return for Envoy common stock which has a beta of 1.35?
 15.35%
 12.80%
 6.98%
 16.24%
An investor, by investing in combinations of stocks, develops a ____portfolio.
 Diversified
 Simple
 Energetic
 Structured


This study source was downloaded by 100000890485048 from CourseHero.com on 09-17-2024 17:19:08 GMT -05:00


https://www.coursehero.com/file/240059161/Module-3-Quiz/

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Topscorer. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75057 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.49
  • (0)
  Add to cart