Finance Questions

ST8

1.
Chapter 8 - risk of infection and range of Return Question MC #117
 
Cheng Inc. is considering a capital budgeting project that has an expected degene rove of 40% and a standard deviation of 30%.  What is the projects coefficient of variation? |
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 | learner Response| harbor| Correct Answer| Feedback|
1. | 0.82| |   |  |
2. | 0.65| |   |  |
3. | 0.92| |   |  |
4. | 0.71| |   |  |
5. | 0.75| |   |  |
|
customary Feedback:| pass judgment return| 40.0%|
Standard deviation| 30.0%|
Coefficient of variation = std dev / expected return =| 0.75|
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Score:| 0/10 |
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2.
Chapter 8 - Risk and Rates of Return Question MC #119
 
Bill Dukes has $100,000 invested in a 2-stock portfolio.  $77,500 is invested in line of merchandise X and the remainder is invested in Stock Y.  Xs of import is 1.50 and Ys beta is 0.70.  What is the portfolios beta? |
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 | Student Response| Value| Correct Answer| Feedback|
1. | 1.65| |   |  |
2. | 1.58| |   |  |
3. | 1.06| |   |  |
4. | 1.45| |   |  |
5. | 1.32| |   |  |
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General Feedback:| Company| Investment| angle| Beta| Weight x beta|
X| $77,500 | 0.775| 1.50| 1.16 |
Y| $22,500 | 0.225| 0.70| 0.16 |
 | $100,000 | 1.00 |  |   1.



32* |
| | | | |
* Portfolio beta|
Score:| 0/10 |
 |
3.
Chapter 8 - Risk and Rates of Return Question MC #122
 
Calculate the require rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.40, and (5) its realized rate of return has averaged 15.0% over the last 5 years. |
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 | Student Response| Value| Correct Answer| Feedback|
1. | 21.66%| |   |  |
2. | 15.96%| |   |  |
3. | 22.61%| |   |  |
4. | 19.00%| |   |  |
5. | 22.04%| |   |  |
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General Feedback:| Real...If you want to get a full essay, order it on our website: Orderessay



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