Strayer FIn100 week 6 quiz
1. Which of these is a measure summarizing the overall past performance of an investment?
Average return
Dollar return
Market return
Percentage return
2. Which of the following is the reward investors require for taking risk?
Market risk premium
Required return
Risk-free rate
Risk premium
3. Which of the following is defined as the volatility of an investment, which includes firm specific risk as well as market risk?
Market risk
Total risk
Diversifiable risk
Standard deviation
4. Which of these is the set of probabilities for all possible occurrences?
Market probabilities
Probability distribution
Probability
Stock market bubble
5. Which of these is the investor’s combination of securities that achieves the highest expected return for a given risk level?
Efficient portfolio
Total portfolio
Optimal portfolio
Modern portfolio
6. To find the percentage return of an investment:
divide the dollar return by the investment’s value at the beginning of the period.
multiply the dollar return by the investment’s value at the beginning of the period.
multiply the dollar return by the investment’s value at the end of the period.
divide the dollar return by the investment’s value at the end of the period.
7. Which of the following is an index that tracks 500 companies, which allows for a great deal of diversification?
Fortune 500
Wall Street Journal
Nasdaq
S&P 500
8. Which of these is the line on a graph of return and risk (standard deviation) from the risk-free rate through the market portfolio?
Efficient market line
Capital market line
Efficient market hypothesis
Capital asset pricing line
9. Which of the following is a model that includes an equation that relates a stock’s required return to an appropriate risk premium?
Efficient markets
Beta
Behavioral finance
Asset pricing
10. Which of the following is data that includes past stock prices and volume, financial statements, corporate news, analyst opinions, etc.?
Generally accepted accounting principles
Public information
Privately held information
Audited financial statements
11. Which of the following are the stocks of small companies that are priced below $1 per share?
Penny stocks
Hedge fund stocks
Bargain stocks
Stock market bubble stocks
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