Reference no: EM132813080

Questions -

Q1. SEBI Inc. earned the following returns for 2018-2020: -10 percent, 10 percent, and 30 percent. What is the standard deviation of the returns?

A. 16.33%

B. 5%

C. 10%

D. 18.21%

E. 30%

Q2. SEBI Inc. share has variance of return of 100%. UG Inc. share has a variance of return of 400%. The correlation coefficient between the two shares is 0.5. If you invest 60% of your funds in SEBI Inc. and 40% in UG Inc. What is the standard deviation of your portfolio?

A. 21%

B. 23.2%

C. 12.2%

D. 10.3%

E. 14.8%

Q3. With the required rate of return being 13.7%, what is the NPV of the following cash flow series?

t=0 t=1 t=2

-150,000 320,000 -110,000

A. $60,000

B. $40,768

C. None of the answer is correct

D. $52,770

E. $46,354

Q4. A government bond issued in Spain has a coupon rate of 6%, a face value of 110 euros, and matures in 5 years. The bond pays annual interest payments. Calculate the price of the bond (in euros) if the yield to maturity is 4.5%

A. 116.6

B. 110

C. 106.77

D. 106.33

E. 117.24