Home

Quiz 1: Introduction to Corporate Finance38 Questions

Quiz 2: Accounting Statements and Cash Flow59 Questions

Quiz 3: Financial Planning and Growth39 Questions

Quiz 4: Financial Markets and Net Present Value: First Principles of Finance36 Questions

Quiz 5: The Time Value of Money73 Questions

Quiz 6: How to Value Bonds and Stocks81 Questions

Quiz 7: Net Present Value and Other Investment Rules57 Questions

Quiz 8: Net Present Value and Capital Budgeting48 Questions

Quiz 9: Risk Analysis, Real Options, and Capital Budgeting35 Questions

Quiz 10: Risk and Return: Lessons From Market History51 Questions

Quiz 11: Risk and Return: the Capital Asset Pricing Model65 Questions

Quiz 12: An Alternative View of Risk and Return: the Arbitrage Pricing Theory42 Questions

Quiz 13: Risk, Return, and Capital Budgeting63 Questions

Quiz 14: Corporate Financing Decisions and Efficient Capital Markets46 Questions

Quiz 15: Long-Term Financing: an Introduction46 Questions

Quiz 16: Capital Structure: Basic Concepts56 Questions

Quiz 17: Capital Structure: Limits to the Use of Debt53 Questions

Quiz 18: Valuation and Capital Budgeting for the Levered Firm54 Questions

Quiz 19: Dividends and Other Payouts47 Questions

Quiz 20: Issuing Equity Securities to the Public43 Questions

Quiz 21: Long-Term Debt50 Questions

Quiz 22: Leasing42 Questions

Quiz 23: Options and Corporate Finance: Basic Concepts63 Questions

Quiz 24: Options and Corporate Finance: Extensions and Applications24 Questions

Quiz 25: Warrants and Convertibles47 Questions

Quiz 26: Derivatives and Hedging Risk50 Questions

Quiz 27: Short-Term Finance and Planning51 Questions

Quiz 28: Cash Management35 Questions

Quiz 29: Credit Management31 Questions

Quiz 30: Mergers and Acquisitions55 Questions

Quiz 31: Financial Distress22 Questions

Quiz 32: International Corporate Finance54 Questions

All types

Questions Type

If the covariance of stock 1 with stock 2 is -.0065, then what is the covariance of stock 2 with stock 1?

(Multiple Choice)

Answer:

A

A portfolio is entirely invested into Buzz's Bauxite Boring Equity, which is expected to return 16%, and Zum's Inc. bonds, which are expected to return 8%. Sixty percent of the funds are invested in Buzz's and the rest in Zum's. What is the expected return on the portfolio?

(Multiple Choice)

Answer:

B

Stock A has an expected return of 20%, and stock B has an expected return of 4%. However, the risk of stock A as measured by its variance is 3 times that of stock B. If the two stocks are combined equally in a portfolio, what would be the portfolio's expected return?

(Multiple Choice)

Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes in walking tours and camping. The equally likely returns on each company over the next year is expected to be: The correlation between the returns of IS and DS is:

(Multiple Choice)

Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes in walking tours and camping. The equally likely returns on each company over the next year is expected to be: The variances of IS and DS are:

(Multiple Choice)

When stocks with the same expected return are combined into a portfolio:

(Multiple Choice)

GenLabs has been a hot stock the last few years, but is risky. The expected returns for GenLabs are highly dependent on the state of the economy as follows: The variance and standard deviation of GenLabs returns are:

(Multiple Choice)

The rate of return on the common stock of Flowers by Flo is expected to be 14% in a boom economy, 8% in a normal economy, and only 2% in a recessionary economy. The probabilities of these economic states are 20% for a boom, 70% for a normal economy, and 10% for a recession. What is the variance of the returns on the common stock of Flowers by Flo?

(Multiple Choice)

You have plotted the data for two securities over time on the same graph, ie., the month return of each security for the last 5 years. If the pattern of the movements of the two securities rose and fell as the other did, these two securities would have:

(Multiple Choice)

If you have a portfolio of two risky stocks which turns out to have no diversification. The reason you have no diversification is:

(Multiple Choice)

Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes in walking tours and camping. The equally likely returns on each company over the next year is expected to be: The covariance between the IS and DS returns is:

(Multiple Choice)

GenLabs has been a hot stock the last few years, but is risky. The expected returns for GenLabs are highly dependent on the state of the economy as follows: The expected return on GenLabs is:

(Multiple Choice)

Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes in walking tours and camping. The equally likely returns on each company over the next year is expected to be: If IS and DS are combined in a portfolio with 50% invested in each, the expected return and risk would be:

(Multiple Choice)

Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes in walking tours and camping. The equally likely returns on each company over the next year is expected to be: The means of IS and DS are:

(Multiple Choice)

Covariance measures the interrelationship between two securities in terms of:

(Multiple Choice)

When a security is added to a portfolio the appropriate return and risk contributions are:

(Multiple Choice)

Showing 1 - 20 of 65

- Essay(0)
- Multiple Choice(0)
- Not Answered(0)
- Short Answer(0)
- True False(0)