Chapter 8 quiz

# Chapter 8 quiz - Chapter 8 Quiz Which class of investments...

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Chapter 8 Quiz Which class of investments has been the most volatile over the past 80 years? Small company stocks A stock with average market risk would have a beta of _____. 1 Congratulations! You have just hit a \$4,000 royal flush jackpot on a \$1 video poker machine in Las Vegas. The machine is now offering you the chance to double your jackpot. If you accept, you and the house will each be dealt one card at random. If your card is higher, your jackpot doubles to \$8,000, but if your card is lower, you win nothing. (If you tie, you and the house each get another card until someone wins.) The odds of doubling your jackpot would therefore be exactly 50 percent. If you behave as a risk averter. .. Student response: Percent Value Correct Response Student Response Answer Choices 100.0% a. you will take the sure \$4,000 payoff. 0.0% b . you will try for the \$8,000 payoff. 0.0% c. choices a and b are equally attractive. 0.0% d . you will take your winnings and bet it all on your favorite roulette number. Score:1 / 1 Question 4 (1 point) Stock X has an expected return of 12 percent, a standard deviation of returns of 14 percent, a correlation coefficient with the market of 0.9, and a beta coefficient of 0.9. Stock Y has an

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Chapter 8 quiz - Chapter 8 Quiz Which class of investments...

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