Exam (elaborations)
Inv2601 Assignment 1 Semester 1 2023
- Institution
- University Of South Africa (Unisa)
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2/27/23, 8:45 PM Assessment 1: Attempt reviewMENU
Dashboard / My courses / INV2601-23-S1 / INV2601 Welcome Message / Assessment 1
Started on Monday, 27 February 2023, 8:20 PM
State Finished
Completed on Monday, 27 February 2023, 8:45 PM
Time taken 25 mins
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following pairs refer to the same type of risk?
a. Total risk and the variance of returns
b. Systematic risk and firm-specific risk
c. Systematic risk and unsystematic risk
d. Undiversifiable risk and unsystematic risk
Your answer is correct.
The correct answer is:
Total risk and the variance of returns
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=6884196&cmid=592671 1/15
, 2/27/23, 8:45 PM Assessment 1: Attempt review
Question 2
Correct
Mark 1.00 out of 1.00
MENU
An analyst gathered the following information about Natal Limited and the market.
Dashboard / My courses / INV2601-23-S1 / INV2601 Welcome Message / Assessment 1
Current market price per share R35.46
Most recent earning per share paid R1.60
Most recent dividend per share paid R0.40
Return-on-assets ratio 20%
Financial leverage 1.50
Beta for Natal Limited 0.52
Expected rate of return on the market portfolio 9%
Risk-free rate of return 3%
What is the required rate of return of Natal Limited if you use the Capital Asset Pricing Model (CAPM)?
a.
6.12%
b. 7.68%
c.
9.00%
d. 12.00%
Your answer is correct.
The correct answer is:
6.12%
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=6884196&cmid=592671 2/15
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