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Finance Exam 3 Homework Problems Questions and Answers CA$15.19   Add to cart

Exam (elaborations)

Finance Exam 3 Homework Problems Questions and Answers

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  • Course
  • GARP
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  • GARP

Finance Exam 3 Homework Problems Questions and Answers Small company stocks, as the term is used in the textbook, are best defined as the... smallest 20 percent of the companies listed on the NYSE. What is the historic real return on long-term government bonds? 2.91% What is the hi...

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  • August 18, 2024
  • 3
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • GARP
  • GARP
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Finance Exam 3 Homework Problems
Questions and Answers
Small company stocks, as the term is used in the textbook, are best defined as the... -
answer smallest 20 percent of the companies listed on the NYSE.

What is the historic real return on long-term government bonds? - answer 2.91%

What is the historic real return on long-term corporate bonds? - answer 3.20%

You purchased GARP stock one year ago at a price of $65.64 per share. Today, you
sold your stock and earned a total return of 18.51 percent. The stock paid dividends of
$2.64 per share over the year. What was the capital gains yield on your investment? -
answer 14.49%

The average compound return earned per year over a multiyear period is called the
_______ average return. - answer geometric

Standard deviation is a measure of which of the following? - answer volatility

Assume that last year T-bills returned 2.8 percent while your investment in large-
company stocks earned an average of 7.6 percent. Which one of the following terms
refers to the difference these two rates of return? - answer risk premium

The U.S. Securities and Exchange Commission periodically charges individuals with
insider trading and claims those individuals have made unfair profits. Given this, you
would be most apt to argue that the markets are less than _____ form efficient. - answer
strong

A stock had returns of 13 percent, 11 percent, 8 percent, 14 percent, -9 percent, and -5
percent over the past six years. What is the geometric average return for this time
period? - answer 4.93 percent

Generally speaking, which of the following best correspond to a wide frequency
distribution? - answer high standard deviation, large risk premium

Which of the following statements are true based on the historical record for 1926-
2016? - answer bonds are generally a safer, or less risky, investment than are
stocks.

Assume all stock prices fairly reflect all of the available information on those stocks.
Which one of the following terms best defines the stock market under these conditions?
- answer efficient capital market

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