# Fundamentals of Corporate Finance Study Set 23

## Quiz 12 :Return, Risk and the Security Market

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Which one of the following is defined by its mean and its standard deviation?
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C

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Which one of the following correctly describes the dividend yield?
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A

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Stacy purchased a stock last year and sold it today for $3 a share more than her purchase price.She received a total of$0.75 in dividends.Which one of the following statements is correct in relation to this investment?
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D

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As long as the inflation rate is positive, the real rate of return on a security will be ____ the nominal rate of return.
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Small-company stocks, as the term is used in the textbook, are best defined as the:
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The return earned in an average year over a multi-year period is called the _____ average return.
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Last year, T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent.Which one of the following terms refers to the difference between these two rates of return?
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The real rate of return on a stock is approximately equal to the nominal rate of return:
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Bayside Marina just announced it is decreasing its annual dividend from $1.64 per share to$1.50 per share effective immediately.If the dividend yield remains at its pre-announcement level, then you know the stock price:
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Assume that the market prices of the securities that trade in a particular market fairly reflect the available information related to those securities.Which one of the following terms best defines that market?
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Which one of the following statements is a correct reflection of the U.S.markets for the period 1926-2010?
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Standard deviation is a measure of which one of the following?
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Which one of the following categories of securities had the highest average return for the period 1926-2010?
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Which one of the following best defines the variance of an investment's annual returns over a number of years?
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Which one of the following statements related to capital gains is correct?
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Which one of the following statements best defines the efficient market hypothesis?
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Which of the following statements is correct in relation to a stock investment? I.The capital gains yield can be positive, negative, or zero. II.The dividend yield can be positive, negative, or zero. III.The total return can be positive, negative, or zero. IV.Neither the dividend yield nor the total return can be negative.
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Which one of the following categories of securities has had the most volatile returns over the period 1926-2010?
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