Instructions
NAME:
To complete the homework assignments in the templates provided:
1. The question is provided for each problem. You may need to refer to your textbook for additional
information in a few cases.
2. You will enter the required information i
FINC 600 Week 3 Selected Practice Problems
Chapter 7
1.
Expected payoff is $100 and expected return is zero. Variance is 20,000 (%
squared) and standard deviation is 141%.
3.
Ms. Sauros had a slightly higher average return (14.6% vs. 14.4% for the
market)
FINC 600 Week 5 Selected Practice Problems
Chapter 11
1.
2.
c
5.
6 - (-.2 + 1.45 X 5) = -1.05%.
6.
a.
True
b.
False
c.
True
d.
True
Weak, semistrong, strong, strong, weak.
7.
Decrease. The stock price already reflects an expected 25% increase. The 20%
inc
FINC 600 Week 4 Selected Practice Problems
Chapter 9
1.
Overestimate
3.
.297, or 29.7% of variation was due to market movements; .703 or 70.3% of the
variation was diversifiable. Diversifiable risk shows up in the scatter about the
fitted line. The standa
FINC 600 Week 6 Selected Practice Problems
Chapter 14
1.
4.
The calculation assumes that the tax rate is fixed, that debt is fixed and
perpetual, and that investors personal tax rates on interest and equity income
are the same.
A firm with no taxable inco