The writer is very fast, professional and responded to the review request fast also. Thank you.
Finance 343 Investments and Portfolio Management
Exam 2 Chapter 5-8
Matching -problem 1- worth 15 points
Place the letter to the matching answer next to the number
1. Market risk a. price reflect available information
2. Firm Specific Risk b. Avoid security analysis
3. Weighted Average of Security Returns c. portfolio expected returns
4. Sharpe d. price changes are unpredictable
5. Beta e. Excess abnormal rate of return
6. Efficient Frontier f. Graph
7. Optimal Risk Portfolio g. Required rate of return; beta
8. Passive Strategy h. Stock Price Volatility
9. Complete Portfolio i. Research Using determinants of values
10. Capital Asset Pricing Model j. Includes all assets
11. Alpha k. Price Research using patterns
12. Random Walk l. Best Combination Of Assets
13. Efficient market Hypothesis m. Systematic Risk
14. Technical Analysis n. Diversification Risk
15. Fundamental Analysis o. Index Model
2. You have been given this probability distribution for the holding-period return for KMP stock:
What is the expected holding-period return for KMP stock?
3. You have been given this probability distribution for the holding-period return for KMP stock:
What is the expected standard deviation for KMP stock?
4. If a portfolio had a return of 18 %, the risk-free asset return was 3%, and the standard deviation of the portfolio’s excess returns was 34%, the risk premium would be _____.
5. You purchase a share of Boeing stock for $90. One year later, after receiving a dividend of $3, you sell the stock for $92. What was your holding-period return?
6. Toyota stock has the following probability distribution of expected prices one year from now:
If you buy Toyota today for $55 and it will pay a dividend during the year of $4 per share, what is your expected holding-period return on Toyota?
7. Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.
E(RP) 12.00%
Standard Deviationof P 7.20%
T-Bill Rate 3.60%
Propotion of complete Portfolio in P 80%
Propotion of complete Portfolio in T-Bills 20%
Composition of P:
Stock A 40%
Stock B 25%
Stock C 35%
Total 100.00%
What is the expected return on Bo’s complete portfolio?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more