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FMI Week 5 Flashcards | StudBud
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FMI Week 5
FMI Week 5
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Flashcards
12 cards
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Practice quiz
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Questions
12
Answers
1
Find the beta of the portfolio.
0.12
0.18
0.10
0.57
2
What are the standard deviations of returns (pa) for stocks A and B respectively?
Stock A: 6.98%, Stock B: 12.09%
Stock A: 11.09%, Stock B: 9.29%
Stock A: 7.88%, Stock B: 6.71%
Stock A: 10.08%, Stock B: 3.92%
3
True or False?
True
False
4
Based on CAPM, find the expected return (pa) for each company
Company A: 12%; Company B: 17%
Company A: 10%; Company B: 13%
Company A: 8%; Company B: 19%
Company A: 9%, Company B: 10%
5
Given that the portfolio beta is 0.8, what is the systematic risk variance (pa) of the portfolio?
2.82%
2.98%
2.63%
2.32%
6
Compute the expected return of the portfolio.
10.9%
11.9%
9.9%
12.9%
7
Based on CAPM,
find the expected return (pa) for each company
: Company A: 9.1%, Company B: 10%
Company A: 10.9%; Company B: 12%
Company A: 11.9%; Company B: 9.9%
Company A: 8.2%; Company B: 9%
8
What is the beta of this portfolio on factor 1 if its portfolio risk premium attributable to factor 1 is 10.9% pa?
1.1
1.2
1.0
1.3
9
Assume CAPM applies, compute the beta of Portfolio A if E(rA) = 23% pa, rf = 2% pa and E(rM) = 10% pa.
2.88
2.91
2.63
2.19
10
Assume the beta of another Portfolio A on factor 2 is 0.9, what is its portfolio risk premium attributable to factor 2?
11.32%
10.71%
9.82%
8.87%
11
Assume the following for Stock Q:
Beta = 1
Find the expected return for the stock (pa) with a market return = 9% pa.
9%
11%
12%
10%
12
What is the stock portfolio's expected return (pa)?
45.7%
28.9%
36.8%
50.5%
