Ch13 - COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E...

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Add, modify, and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options, such as feedback and images, are available for question creation. COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E - ROSS > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add Multiple Choice Creation Settings Name Chapter 13 Return, Risk, and the Security Market Line Description Questions which Blackboard's assessment component is incapable of supporting are not included in the export. Instructions Add Question Here Question 1 Multiple Choice Question You own a stock that you think will produce a return of 11 percent in a good economy and 3 percent in a poor economy. Given the probabilities of each state of the economy occurring, you anticipate that your stock will earn 6.5 percent next year. Which one of the following terms applies to this 6.5 percent? Answer arithmetic return historical return expected return geometric return required return Correct Feedback Refer to section 13.1 Incorrect Feedback Refer to section 13.1 Add Question Here Question 2 Multiple Choice Question Suzie owns five different bonds valued at $36,000 and twelve different stocks valued at $82,500 total. Which one of the following terms most applies to Suzie's investments? Answer index portfolio collection grouping risk-free Correct Feedback Refer to section 13.2 Incorrect Feedback Refer to section 13.2 Add Question Here Question 3 Multiple Choice Question Steve has invested in twelve different stocks that have a combined value today of $121,300. Fifteen percent of that total is invested in Wise Man Foods. The 15 percent is a measure of which one of the following? Answer portfolio return portfolio weight
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degree of risk price-earnings ratio index value Correct Feedback Refer to section 13.2 Incorrect Feedback Refer to section 13.2 Add Question Here Question 4 Multiple Choice Question Which one of the following is a risk that applies to most securities? Answer unsystematic diversifiable systematic asset-specific total Correct Feedback Refer to section 13.4 Incorrect Feedback Refer to section 13.4 Add Question Here Question 5 Multiple Choice Question A news flash just appeared that caused about a dozen stocks to suddenly drop in value by about 20 percent. What type of risk does this news flash represent? Answer portfolio nondiversifiable market unsystematic total Correct Feedback Refer to section 13.4 Incorrect Feedback Refer to section 13.4 Add Question Here Question 6 Multiple Choice Question The principle of diversification tells us that: Answer concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk. concentrating an investment in three companies all within the same
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Ch13 - COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E...

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