Average Coefficient of variation Variation Standard deviation Which of the

Average coefficient of variation variation standard

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Average Coefficient of variation Variation Standard deviation Which of the following should have the lowest risk? Short term loans to good companies Long term loans to good municipalities Long term loans to good companies Short term loans to good municipalities 8% 2% 3% 9% Which of the following should provide the greatest return? Large cap stock Municipal bonds Treasury bonds Small cap stock You purchased a condo at \$125,000. You plan on selling it for \$145,000. What is the appreciation rate? (R 14% 16% -14% -16% Which of the following should have the lowest standard deviation? Mid cap stock Small cap stock Large cap stock Value stock A security was purchased at \$118 and paid dividends over the year in the amount of \$7.50. If it was sold
he nearest whole number)
Round to the nearest whole number) d at \$121 what is the holding period return? (Round to the nearest whole number)
Diversification will help as long as securities are not _____ correlated. negatively positively partially perfectly Diversification strives to counterbalance a negative movement of one security with a _______ movement of another. positive sizeable small negative If the correlation is equal to zero the movements are considered ________. negligible random significant identical Diversification strives to smooth out _______ risk. systematic collective unsystematic minimal A correlation coefficient equal to ____ would imply no correlation. -1 0 10 1 mutual fund blue-chip conglomerate low beta firm Which of the following stocks would likely be the most positively correlated? Home Depot and Wal-Mart McDonalds and Wendys Wal-Mart and Wendy’s Home Depot and McDonalds The possible range for correlation coefficients is _______. 0 to 100 -10 to 10 -1 to 1 0 to 1 Perfect positive correlation implies ______ movement. identical significant a distinctive Buying shares in a ______ can provide a diversified portfolio.
no Assuming you own stock in Pepsi the addition of which stock below would lead to the least diversified portfolio? JC Penny Home Depot Coca-Cola Kodak Assuming you own stock in Wal-Mart the addition of which stock below would lead to the most diversified portfolio? K-Mart McDonalds JC Penny Target If an investor were concerned with the U.S. economy they may seek to diversify by investing in ______. Foreign firms Blue chip firms Municipalities Growth oriented firms

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