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SPHE 421 Final Exam/100 Questions and Answers Scored 95%;AMU
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SPHE 421 Final Exam/100 Questions and Answers Scored 95%;AMU
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SPHE 421 Final Exam/100 Questions andAnswers Scored 95%;AMU
The geometric average of -12%, 20%, and 25% is
_________.
8.42%
11%
9.7%
18.88% - ANSWER-9.7%
(.88*1.2*1.25)^1/3=1.096
1-1.096= .096 or 9.7%
The inside quotes on a limit order book can be found
______.
at the top of the list
at the bottom of the list
, by taking the averages of the bid and ask prices on the
list
only by direct contact with the specialist who maintains
the book - ANSWER-at the top of the list
Annual percentage rates can be converted to effective
annual rates by means of the following formula:
[1 + (APR/n)]n - 1
(APR)(n)
(APR/n)
(periodic rate)(n) - ANSWER-[1 + (APR/n)]n - 1
The holding period return on a stock is equal to
_________.
the capital gain yield over the period plus the inflation
rate
the capital gain yield over the period plus the dividend
yield
the current yield plus the dividend yield
the dividend yield plus the risk premium - ANSWER-the
capital gain yield over the period plus the dividend yield
,Firms that specialize in helping companies raise capital by
selling securities to the public are called _________.
pension funds
investment banks
savings banks
REITs - ANSWER-investment banks
The excess return is the _________.
rate of return that can be earned with certainty
rate of return in excess of the Treasury-bill rate
rate of return to risk aversion
index return - ANSWER-rate of return in excess of the
Treasury-bill rate
The interest rate charged by large banks in London to lend
money among themselves is called _________.
the prime rate
the discount rate
the federal funds rate
, LIBOR - ANSWER-LIBOR
Diversification is most effective when security returns are
_________.
high
negatively correlated
positively correlated
uncorrelated - ANSWER-negatively correlated
The market value weighted-average beta of firms
included in the market index will always be
_____________.
0
between 0 and 1
1
none of these options (There is no particular rule
concerning the average beta of firms included in the
market index.) - ANSWER-1
In a single-factor market model the beta of a stock
________.
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