Question 1: The square root of the variance is called the: Select one: a. Risk p

Question

Question 1: The square root of the variance is called the:

Select one:

a. Risk premium.

b. Probability range.

c. Standard deviation.

d. Average rate of return.

e. Excess return.

Question 2

Bob's Toys has a fixed asset turnover rate of 1.2 and a total asset turnover rate of .84. Gerold's Toys has a fixed asset turnover rate of 1.1 and a total asset turnover rate of .96. Both companies have similar operations. Bob's Toys:

Select one:

a. is generating $1.20 in net income for every $1 in net fixed assets.

b. is using its total assets more efficiently than Gerold's Toys.

c. has $.84 in total assets for every $.96 Gerold's has in total assets.

d. s using its fixed assets less efficiently than Gerold's Toys.

e. is generating $1.20 in sales for every $1 in net fixed assets.

Question 3

Bond ratings issued by Standard and Poors specifically account for inflation risk.

Select one:

True

False

Question 4

___________ interest rates are posted by financial institutions for mortgages.

Select one:

a. Adjusted

b. Nominal

c. Normative

d. Holding period

e. Real

Question 5

Your portfolio consists of two stocks. You have $2000 in stock A and $8000 in stock B. The returns for stock A have a standard deviation of 20% and the returns for stock B have a standard deviation of 10%. The correlation coefficient between A and B is 0. What is your portfolio standard deviation?

Select one:

a. 11.2%

b. 9.4%

c. 10.5%

d. 10.2%

e. 8.9%

Explanation / Answer

Ans 1 option C, standard deviation

Ans 2 option E , Fixed asset turnover = Sales/fixed asset = 1.2

So company is generating $1.2 sales for $1 of fixed asset

Ans 3 True

Ans 4 option B, Nominal

I can answer only 4 parts as per chegg policy, please upload 5th part separately

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