FINA3080Investment Analysis and Portfolio Analysis
Date: Drive 12, 2013
1 . В If all traders become more risk averse the SML is going to _______________ and stock rates will _______________. В A. В shift upward; riseB. В shift down; fallC. В have the same intercept with a higher slope; fallD. В have the same intercept which has a flatter incline; rise В
2 . В According to the capital asset prices model, securities with a _________. В A. В negative alpha is considered a good buyB. В positive alpha dog is considered overpricedC. В positive leader is considered underpricedD. В zero alpha is considered a great buyВ three or more. В The beta of a protection is equal to _________. В A. В the covariance between the reliability and market returns divided by the difference of the market's returnsB. В the covariance between security and market results divided by the standard deviation of the market's returnsC. В the variance with the security's earnings divided by the covariance involving the security and market returnsD. В the difference of the security's returns divided by the variance of the market's returnsВ some. В Consider this two stocks and shares, A and B. Stock A has an expected returning of 10% and a beta of 1. 20. Share B comes with an expected return of 14% and a beta of 1. 80. The expected industry rate of return is usually 9% as well as the risk-free level is five per cent. Security __________ would be deemed a good buy mainly because _________. В A. В A, it offers an predicted excess go back of 0. 2%B. В A, it offers an expected surplus return of 2. 2%C. В B, it offers an expected excessive return of just one. 8%D. В B, it offers an expected go back of 2. 4%
5. В In his famous critique with the CAPM, Rotate argued which the CAPM ______________. В A. В is not testable because the authentic market stock portfolio can never end up being observedB. В is of limited use since systematic risk can never end up being entirely eliminatedC. В should be replaced by the APTD. В should get replaced by the Celebridad French three or more factor style В
6th. В The SML is valid for _______________ and the CML is valid for ______________. В A. В only individual...