Quiz Chapter 1 A
Quiz Chapter 1 B
1. The average risk premium on large-company stocks for the period 1926-2012 was:
a. 6.7 percent.
b. 8.0 percent.
c. 8.5 percent.
d. 12.3 percent.
e. 13.6 percent.
Answer: 8.0 percent
2. Which one of the following had the
Award: 5.00 points
Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of
$.28 per share during the following year, and the share price at the end of the year was $41. Compute your
total dollar return
What is special about International Finance?
Foreign Exchange risk: this is the risk that foreign currency profits may evaporate
in dollar terms due to unanticipated unfavorable exchange rate movements.
o Fixed exchange rates were aba
Collar: If you have 10M payable, buy ceiling call, write flour put. Between write and buy is the cost of hedging. Lower flourput is chapter. Receivablebuy flour puts and write ceiling calls. Ceiling put
limited of currency strong. If currency revalue a lo
10. IIBDetermining Interest. Jackie Martin purchased three $1,000 corporate bonds issued by J. C. Penney.
ach bond pays 7.40 percent and matures in 2037. What is the total dollar amount of interest Jackie
w111 receive for her three bonds each year?
Chapter 14 (Investing in Stocks)
FINANCIAL PLANNING PROBLEMS
1. Calculating Dividend Amounts. Betty and John Martinez own 22.0 Shal‘es 0f E
stock. Exxon Mobil’s quarterly dividend is $1.40 per share. What IS the amount of
that the Martinez couple will rec
Chapter 001 A Brief History of Risk and Return
I didnt know
Dont need to know (dates)
Multiple Choice Questions:
1. The total dollar return on a share of stock is defined as the:
A. change in the price of the stock over a period of time.
Award: 10.00 points
The rate of return on Cherry Jalopies, Inc., stock over the last five years was 17 percent, 11 percent, 1
percent, 7 percent, and 10 percent.
What is the geometric return for Cherry Jalopies, Inc.? (Do not round intermediate calcula