A financial advisor collects the following information that relates to a specific client: Risk-Free Rate of Interest = 3.1%, Return Due to Clients Risk = 9.6%, and Total Portfolio Return = 13.8%. The Fama decomposition would assign a selectivity value that is closest to: a1.1% b)6.5% c4.2% d) 10.7%
Matty has a portfolio with a beta of zero and an alpha of 7.0. Assuming the risk-free return equals 3%, then based on the CAPM the retu for the portfolio is a) 10% b) greater than Rm cequal to the Rm d) less than Rm but greater than Rf
George bought 100 shares of Apple at $115 per share. One year later he sold the stock for S152 per share. During
a) 32% b34% c) 73% d206%
The correlation coefficient between a security and the market portfolio is 0.7.The standard deviation of the security is 30% while the market portfolio has a standard deviation of i5%. The beta of the security is closest to a2.0 b1.4 0.315
coefficient of variation? a Security A with an expected returm of 12% and a standard deviation of 14% b Security B with an expected return pf 5% and a standard deviation of 0% c) Security C with an expected return of 8% and a standard deviation of 9%. d Security D with an expected return of 15% and a standard deviation of 15%
Raymond buys 1000 shares of Axe stock at $55 per share on January 1, Year 1. At the end of the first year (December 31, Year 1), the stock has dropped, so he buys 500 more shares at $50 per share. At the end of the second year (December 31, Year 2), he buys another 500 shares for S40 per share. The stock pays a dividend of S3.00 per share on December 29th of each year. Axe is trading at $63.00 per share as of December 31, Year 3. What is the dollar weighted return for Steve's investment in Axe since January 1, Year 1 to today? a 12.4% %6'6(q c15.5% d 17.2%
