Ch 7 quiz - Question 1 following are the factors for the...

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Question 1 (1 point) Which of the following are the factors for the Fama-French model? Student response: Student Respons e Answer Choices a. The excess market return, a size factor, and a book-to- market factor. b . The excess market return, a debt factor, and a book-to- market factor. c. The excess market return, a size factor, and a debt. d . A debt factor, a size factor, and a book-to-market factor. e. The excess market return, an industrial production factor, and a book-to-market factor. Score:1 / 1 Question 2 (1 point) In a portfolio of three different stocks, which of the following could NOT be true? Student response: Student Respons e Answer Choices a. The riskiness of the portfolio is less than the riskiness of each of the stocks if they were held in isolation. b . The riskiness of the portfolio is greater than the riskiness of one or two of the stocks. c. The beta of the portfolio is less than the betas of each of the individual stocks. d . The beta of the portfolio is greater than the beta of one or two of the individual stocks' betas. e. None of the above (i. e. , they all could be true, but not necessarily at the same time).
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Question 3 (1 point) Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate of return is 15.0%, the risk-free rate is 7.0%, and the Fund's assets are as follows: Stock Investment Beta A $ 200,000 1.50 B 300,000 -0.50 C 500,000 1.25 D 1,000,000 0.75 Student response: Student Response Answer Choices a. 10.67% b. 11.23% c. 11.82% d. 12.45% e. 13.10% Score:1 / 1 Question 4 (1 point) You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B. Which of the possible answers best describes the historical betas for A and B? Years Market Stock A Stock B 1 0.03 0.16 0.05 2 -0.05 0.20 0.05 3 0.01 0.18 0.05 4 -0.10 0.25 0.05 5 0.06 0.14 0.05 Student response: Student Response Answer Choices a. b A > 0; b B = 1. b.
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Ch 7 quiz - Question 1 following are the factors for the...

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