Topic 10 Quiz

Due Nov 22 at 11:59pm Points 10 Questions 10 Available Nov 16 at 8am - Nov 22 at 11:59pm 7 days Time Limit None

This quiz was locked Nov 22 at 11:59pm.

Attempt History
Attempt Time Score
LATEST Attempt 1 4,850 minutes 10 out of 10

Score for this quiz: 10 out of 10

Submitted Nov 21 at 12:50am
This attempt took 4,850 minutes.

Question 1 1 / 1 pts

Risky securities have higher average returns than riskless securities.

Correct!
True

False

Question 2 1 / 1 pts

Historical information about capital markets is useful for drawing conclusions about the relationship between risk and return.

Correct!
True

False

Question 3 1 / 1 pts

The greater the standard deviation, the lower the risk.

True

Correct!
False

Question 4 1 / 1 pts

The standard deviation measures the volatility of a security's returns.

Correct!
True

False

Question 5 1 / 1 pts

The larger the variance, the greater the risk of the investment.

Correct!
True

False
 Question 6 1 / 1 pts

The standard deviation can be negative, positive, or equal to zero.

True

Correct! False

Question 7 1 / 1 pts

You purchased 200 shares of preferred stock on January 1, 2002 for $42.27 per share. The stock pays an annual dividend of $7 per share. On
December 31, 2002 the market price is $46.88 per share. What is your total dollar return for the year?

$2,678

$922

$1,400

$478

Correct! $2,322

Question 8 1 / 1 pts

You purchased 500 shares of a stock at a price of $22.50 per share. One year later, the shares sold for $21 each. At that end of the year, a $1.50
per share dividend was paid. What is the total percentage return for the investment?

7.1%

-6.7%

-7.1%

Correct! 0.0%

6.7%

Question 9 1 / 1 pts

Calculate the variance of an investment with five year returns of 10%, 6%, 4%, 2% and (10%).

(0.57%)

Correct! 0.57%

1.57%

(1.57%)

2.57%

Question 10 1 / 1 pts

Calculate the standard deviation of an investment with five year returns of 15%, 10%, 5%, (5%) and (10%).

9.37%
 8.37%

12.37%

Correct!
10.37%

11.37%

Quiz Score: 10 out of 10