Exam3 FIN370 A Key (2)

# Over the past six years a stock had annual returns of

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25. Over the past six years, a stock had annual returns of 2 percent, 10 percent, 14 percent, 8 percent, -6 percent, and 8 percent, respectively. What is the standard deviation of these returns? a. 8.38 percent B. 7.04 percent c. 12.27 percent d. 7.19 percent e. 11.97 percent BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 010 #65 SECTION: 10.4 TOPIC: STANDARD DEVIATION TYPE: PROBLEMS

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26. Anderson Enterprises currently has \$400 in cash. The company owes \$1,200 to suppliers for merchandise and \$4,500 to the bank for a long-term loan. Customers owe Anderson's \$1,900. The inventory has a book value of \$3,700 and an estimated market value of \$4,400. If Anderson's compiled a financial statement today, how much would it show as the value of the current assets? BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #55 SECTION: 2.1 TOPIC: CURRENT ASSETS TYPE: PROBLEMS 27. The amount of systematic risk present in a particular risky asset relative to that in an average risky asset is called the: BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 011 #8 SECTION: 11.6 TOPIC: BETA COEFFICIENT TYPE: DEFINITIONS 28. The discount rate that causes the net present value of a project to equal zero is called the: BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 008 #5 SECTION: 8.4 TOPIC: INTERNAL RATE OF RETURN TYPE: DEFINITIONS
29. Which one of the following is the preferred method of analyzing a proposed investment? a. internal rate of return b. profitability index C. net present value d. payback e. accounting rate of return BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 008 #13 SECTION: 8.1 TOPIC: NET PRESENT VALUE TYPE: CONCEPTS 30. A portfolio is a(n): BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 011 #2 SECTION: 11.2 TOPIC: PORTFOLIO TYPE: DEFINITIONS

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