Đề 2 ( Các câu 2, 6, 12, 16, 21, ...) - Đến câu 38 trang 31

Which of the following measures is NOT considered when calculating the risk (variance) of a two-asset portfolio?

• Each asset's standard deviation.

• The beta of each asset.

• Each asset weight in the portfolio.

• No answer is correct

All of the following are investment constraints EXCEPT:

• tax concerns.

• pension plan contributions of the employer.

• liquidity needs.

• No answer is correct

Over the long term, the annual returns and standard deviations of returns for major asset classes have shown:

• a positive relationship.

• a negative relationship.

• no clear relationship.

• No answer is correct

Which of the following is NOT a rationale for the importance of the policy statement in investing? It:

• allows the investor to judge performance by objective standards.

• specifies a benchmark against which to judge performance.

• forces investors to take risks.

• No answer is correct

 A stock's abnormal rate of return is defined as the:

• actual rate of return less the expected risk- adjusted rate of return.

• rate of return during abnormal price movements.

• expected risk- adjusted rate of return minus the market rate of return.

• No answer is correct

All of the following affect an investor's risk tolerance EXCEPT:

• family situation.

• tax bracket.

• years of experience with investing in the markets.

• No answer is correct

Which of the following statements is NOT consistent with the assumption that individuals are risk averse with their investment portfolios?

• Many individuals purchase lottery tickets.

• Higher betas are associated with higher expected returns.

• There is a positive relationship between expected

  returns and expectedrisk.

• No answer is correct

The following information is available for the stock of Park Street Holdings:

The price today (P₀ ) equals $45.00.

The expected price in one year (P₁ ) is $55.00. The stock's beta is 2.31.

The firm typically pays no dividend.

The 3-month Treasury bill is yielding 4.25%. The historical average S&P 500 return is 12.5%.

Park Street Holdings stock is:

• undervalued by 3.7%.

• overvalued by 1.1%.

• undervalued by 1.1%.

• overvalued by 3.7%.

The quick ratio is considered a more conservative measure of liquidity than the current ratio because the quick ratio excludes:

• short-term marketable securities, which may need to be sold

  atasignificantloss.

• inventories, which are not necessarily liquid.

• accounts receivable, which may not be collectible in the short term.

If the calculated net present value (NPV) is negative,

which of the following must be CORRECT.The discount rate used is:

• less than the

  internalrateofreturn(IRR)

• equal to the internal rate of return (IRR)

• greater than the

  internalrateofreturn(IRR)