Corporate Finance Test Questions and Correct Answers & Latest Updated
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Course
Corporate Finance
Institution
Corporate Finance
Which of the following portfolios has the least risk?
A. A portfolio of Treasury bills
B. A portfolio of long-term U.S. government bonds
C. A portfolio of U.S. common stocks of small firms
D. A portfolio of U.S. common stocks of large firms
o :## A. a portfolio of treasury bills
For long-term...
Corporate Finance Test Questions and Correct
Answers & Latest Updated
Which of the following portfolios has the least risk?
A. A portfolio of Treasury bills
B. A portfolio of long-term U.S. government bonds
C. A portfolio of U.S. common stocks of small firms
D. A portfolio of U.S. common stocks of large firms
o :## A. a portfolio of treasury bills
For long-term U.S. government bonds, which risk concerns investors the most?
A.
Interest rate risk
B.
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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Default risk
C.
Market risk
D.
Liquidity risk
o :## A. Interest rate risk
What has been the average annual rate of interest on Treasury bills over the past 111 years
(1900 to 2011)?
A.
Less than 2%
B.
Between 2% and 3%
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
,3|Page: 2024/2025 Grade A+
C.
Between 3% and 4%
D.
Greater than 4%
o :## A. less than 2%
What has been the average annual nominal rate of interest on Treasury bills over the past
111 years?
A.
Less than 1%
B.
Between 1% and 2%
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
, 4|Page: 2024/2025 Grade A+
C.
Between 2% and 3%
D.
Greater than 3%
o :## D. greater than 3%
What has been the average nominal rate of return on a portfolio of US common stocks over
the past 111 years (from 1900 to 2011)
A.
Less than 2%
B.
Between 2% and 5%
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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