Ünite Sınavı Soruları

Which one below is about the Degree of Operating Leverage of the factors that affect the Beta of a firm?

Those stocks the returns of which are relatively more sensitive to changes in the market returns have a higher ………… and …………...

I.It is the rate of return that investors require to invest in risk free investments in that environment.

II.The short term T-Bill rate is usually used to measure it. 

III.The Risk premium is the return in excess of the risk-free rate that investors require to compensate for the risk of an investment.

Which one/ones above is/are correct about risk free returns?

What is the maximum value for the correlation of securities to provide a benefit from diversification? 

Suppose that you invest 30% of your money in security A, %50 in security B and the rest in security C. The expected returns of A, B and C are given as 10%, 8% and 5% respectively. What is your expected rate of return for this investment?

Which of the following is correct for the Efficient Market concept?

Beta is used to measure the risk level of securities in relation to the overall market. Beta values do not have a limit, they can range from negative infinity to positive infinity. However, the vast majority of beta values will lie between 0 and +2.

Which of the following is true If 1> Beta >0?

1. The risk-free return is the return on securities that always yield their expected returns, regardless of the economic environment

2. The risk free return is usually approximated with the returns from very short-term government securities

3. The risk-free asset has variability in zero variance and zero correlation and covariance with any asset

4. The Capital Market Line (CML) is the line that connects the risk-free asset with the risk free rate

Which of the above statements are true?

Which of the following is true for the graph above?

Which of the following is defined as "the excess return required on a risky asset over that earned on a risk-free asset"?

Historically, which of the following investments has provided the smallest average return in USA Markets for 1926 - 2017 period?

Beta is the slope of …………………

Which of the following is the correct definition of Expected return of a portfolio?  

The variance of a portfolio of 2 stocks is lower than the variance of the both of the variances of the individual stocks in the portfolio unless ………..

• It is the relationship between expected returns and beta
• It deals with systematic risk

Which of the following defines the above features?

Unexpected returns are the result of new unexpected information arriving to the market during a period.

Which of the following could not be an example of unexpected information?

• Announcement of the latest growth rate of the economy
• Announcement of a new facility being built that will significantly increase the production capacity of the company
• Announcement of a new contract to sell large quantity of products to another country
• News of a large accident at the factor

Which of the following is related to the above examples?

The correlation always lies between _____ (perfect positive correlation) and _____ (perfect negative correlation).

Which of the following best completes the statement above?

Which of the following is the value for correlation of two securities that creates the maximum diversification? 

Which of the following statements about Beta is wrong?