Reference no: EM133016929

Questions -

Q1) Christine's portfolio has an expected return of 16% and a beta of 1.50. Brian has a portfolio with an expected return of 12% and a beta of 1.0. the risk free rate is 3%. According to the Treynor measure,

a. The answer depends on Christine and Brian's risk tolerance

b. Christine has the better portfolio

c. Brian has the better portfolio

d. The portfolios are equally desirable

Q2) On January 1, Ben's portfolio was valued at $130,500. During the year Ben received $3,300 in interest and $2,100 in dividends. He also sold one stock at a gain of $1,600. The value of the portfolio onDecember 31 of the same year was $166,570. at the end of the June, Ben withdrew $6,000 from the portfolio. What was the holding period return for the year?

a. 32.5%

b. 33.0%

c. 31.8%

d. 33.8%

Q3) Which of the following statements concerning market and limit orders are correct?

I. Market orders guarantee both a price and execution

II. Market orders guarantee an execution but not a price

III. Limit orders guarantee a price but not an execution

IV. stop-loss orders may never be executed

a. I and III only

b. I and IV only

c. II, III and IV only

d. II and IV only

Q4) Christine's portfolio has an expected return of 16% and a beta of 1.50. Brian has a portfolio with an expected return of 12% and a beta of 1.0. The risk free rate is 3%. According to the Treynor measure,

a. The answer depends on Christine and Brian's risk tolerance

b. Christine has the better portfolio

c. Brian has the better portfolio

d. The portfolios are equally desirable

Q5) The internet provides

I. Educational sites for financial investing

II. The ability to trade securities on-line

III. Current information on stocks and bonds

IV. Analysts reports on individual stocks

a. I,II, III and IV

b. II and III only

c. I, II and III only

d. III and IV only