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No benefits of diversification can occur with two stocks when AB is

No benefits of diversification can occur with two stocks when AB is

No benefits of diversification can occur with two stocks when ρAB is

▸ -1.

▸ 0.

▸ 0.52.

▸ +1.

Finance   duo21   28   djbo89   A month ago

Which of the following is a TRUE statement of modern portfolio theory?

Which of the following is a TRUE statement of modern portfolio theory?

[html]Which of the following is a TRUE statement of modern portfolio theory?

▸ It demonstrates that by combining securities into portfolios, we can increase risk.

▸ It stipulates that investors should diversify their investments so as to be unnecessarily exposed to a single negative event.

▸ It shows how to form portfolios with the highest possible expected rate of return for any

Finance   angad1983   22   tk9790   A month ago

Aquarius Inc. has posted the following annual returns for the past 5 years: 17%, 23%, -13%, 7%, and ...

Aquarius Inc. has posted the following annual returns for the past 5 years: 17%, 23%, -13%, 7%, and ...

[html]Aquarius Inc. has posted the following annual returns for the past 5 years: 17%, 23%, -13%, 7%, and -15%. What are the variance and standard deviation of these annual returns?

▸ Variance = 0.00237; standard deviation = 0.04868

▸ Variance = 0.02972; standard deviation = 0.1724

▸ Variance = 0.06221; standard deviation = 0.2494

▸ Variance = 0.2341; standard deviation = 0.4838

Finance   Infinitez   19   angfucious   A month ago

You have been given the following forecasts for the economy and Stock A: (1) the probability of ...

You have been given the following forecasts for the economy and Stock A: (1) the probability of ...

[html]You have been given the following forecasts for the economy and Stock A: (1) the probability of having a recession next year is 30.0%, a normal economy is 55.0%, and an expansion is 15.0%, and (2) the price of Stock A will be $9 if the economy is in recession, $15 if the economy is normal, and $18 if the economy is in expansion. What is the ex ante variance of Stock A's return

Finance   SirJohnny   17   wonton1   A month ago

You have given the following forecasts for the economy and Stock A: (1) the probability of having a ...

You have given the following forecasts for the economy and Stock A: (1) the probability of having a ...

[html]You have given the following forecasts for the economy and Stock A: (1) the probability of having a recession next year is 30.0%, a normal economy is 55.0%, and an expansion is 15.0%, and (2) the price of Stock A will be $9 if the economy is in recession, $15 if the economy is normal, and $18 if the economy is in expansion. What is the ex ante standard deviation of Stock A's r

Finance   flemingpk   21   jordankites45   A month ago

Given the following forecasts, what is the variance of returns?State of the EconomyProbability of ...

Given the following forecasts, what is the variance of returns?State of the EconomyProbability of ...

[html]Given the following forecasts, what is the variance of returns?

State of t

Finance   Bapelol   19   gamblawc   A month ago

Given the following forecasts, what is the standard deviation of returns?State of the ...

Given the following forecasts, what is the standard deviation of returns?State of the ...

[html]Given the following forecasts, what is the standard deviation of returns?

Finance   jack103106   20   micp3537   A month ago

What is the standard deviation of returns on a stock priced today at $10 that has a 25.0% ...

What is the standard deviation of returns on a stock priced today at $10 that has a 25.0% ...

What is the standard deviation of returns on a stock priced today at $10 that has a 25.0% probability of increasing to $13, a 50.0% probability of increasing to $12, a 15.0% probability of increasing by 5.0%, and a 10.0% probability of decreasing to $7?

▸ 0.0094

▸ 0.0968

▸ 0.1692

▸ 0.0286

Finance   Yukinara   18   lnvolley24   A month ago

The closing prices for Stock B from December to June are: $42.90, $44.20, $51.50, $49.60, $45.50, ...

The closing prices for Stock B from December to June are: $42.90, $44.20, $51.50, $49.60, $45.50, ...

The closing prices for Stock B from December to June are: $42.90, $44.20, $51.50, $49.60, $45.50, $46.30, and $42.50. What is the standard deviation of returns over the six-month period?

▸ 9.318%

▸ 0.295%

▸ 5.436%

▸ 0.868%

Finance   johnnyappleseed   22   shadowblacw   A month ago

You have observed the following annual returns for Motherboard Inc.: 25%, 15%, -20%, 30%, and -15%. ...

You have observed the following annual returns for Motherboard Inc.: 25%, 15%, -20%, 30%, and -15%. ...

You have observed the following annual returns for Motherboard Inc.: 25%, 15%, -20%, 30%, and -15%. What are the variance and standard deviation of the returns?

▸ Variance = 0.05325; standard deviation = 0.23076

▸ Variance = 0.06519; standard deviation = 0.00425

▸ Variance = 0.23076; standard deviation = 0.05325

▸ Variance = 0.00425; standard deviation = 0.06519

Finance   DoveNinja763537   17   elixy19   A month ago

Which of the following statements is FALSE?

Which of the following statements is FALSE?

Which of the following statements is FALSE?

▸ Risk measures the volatility of the returns of the asset.

▸ The standard deviation is not the only measure of risk.

▸ Risk measures are concerned only with the negative performance of the asset.

▸ Risk and return are inversely related.

Finance   drdoombot   21   Gab27   A month ago

Which of the following statements is TRUE?

Which of the following statements is TRUE?

[html]Which of the following statements is TRUE?

▸ The more stable the possible returns, the greater the risk.

▸ Risk means the probability that the actual return from an investment is less than the expected return.

▸ Securities offering lower expected rates of return tend to be riskier.

▸ The range is a more accurate measure of risk than the standard deviation, because the rang

Finance   sperry263   16   dcmc92   A month ago

AMC Corp had a geometric weekly return of 5.0% for this past week. The daily returns for Monday ...

AMC Corp had a geometric weekly return of 5.0% for this past week. The daily returns for Monday ...

AMC Corp had a geometric weekly return of 5.0% for this past week. The daily returns for Monday through Thursday are 4.0%, 3.0%, -7.0%, and 9.0%, respectively. If AMC's stock traded at $16.22 when the market closed on Friday, what is the opening price of the stock on Friday?

▸ $14.11

▸ $13.94

▸ $13.38

▸ $13.47

Finance   viva902   17   Omfgtimmy   A month ago

Baxter Inc.'s annual returns for the past four years were: 2.75%, -1.8%, 7.2%, and 6.5%. What are ...

Baxter Inc.'s annual returns for the past four years were: 2.75%, -1.8%, 7.2%, and 6.5%. What are ...

[html]Baxter Inc.'s annual returns for the past four years were: 2.75%, -1.8%, 7.2%, and 6.5%. What are the arithmetic and geometric average annual returns for Baxter over the four-year period?

▸ Arithmetic mean = 6.80%; geometric mean = 3.35%

▸ Arithmetic mean = 18.03%; geometric mean = 21.20%

▸ Arithmetic mean = 3.66%; geometric mean = 3.60%

▸ Arithmetic mean = 14.65%; geometr

Finance   abdallaex   21   hizzy117   A month ago

The arithmetic average daily return for Dopey Inc. was 2.0% for this past week. Dopey's stock was ...

The arithmetic average daily return for Dopey Inc. was 2.0% for this past week. Dopey's stock was ...

The arithmetic average daily return for Dopey Inc. was 2.0% for this past week. Dopey's stock was trading at $23.70 when the market closed on Friday. The daily returns for Monday, Tuesday, Thursday, and Friday are 4.8%, 5.6%, -4.0%, and 12.2%, respectively. What was Dopey's opening price on Monday?

▸ $21.55

▸ $22.80

▸ $21.75

▸ $21.47

Finance   bluerose501   19   Loveameriah   A month ago

The geometric average daily return for Grumpy Inc. was 3.0% for this past week. Grumpy's stock was ...

The geometric average daily return for Grumpy Inc. was 3.0% for this past week. Grumpy's stock was ...

The geometric average daily return for Grumpy Inc. was 3.0% for this past week. Grumpy's stock was traded at $18.82 when the market closed on Friday. The daily returns for Monday through Thursday are 5.0%, 2.0%, -10.0%, and 8.0%, respectively. What is the opening price of Grumpy on Friday?

▸ $16.94

▸ $17.11

▸ $16.68

▸ $16.90

Finance   dmalex13   21   mhmoud123   A month ago

The geometric average quarterly return of ROM Company was 5.0% for the previous year. What was the ...

The geometric average quarterly return of ROM Company was 5.0% for the previous year. What was the ...

The geometric average quarterly return of ROM Company was 5.0% for the previous year. What was the return for the third quarter if the returns for the first, second, and fourth quarters were 10.0%, -9.05%, and 8.0%, respectively?

▸ 11.05%

▸ -7.05%

▸ 12.50%

▸ -6.18%

Finance   onetouch   18   ikidding   A month ago

You have observed the following for Montreal Smoked Meat Ltd.:Closing PriceMay 4, 2016$25.09May 11, ...

You have observed the following for Montreal Smoked Meat Ltd.:Closing PriceMay 4, 2016$25.09May 11, ...

[html]You have observed the following for Montreal Smoked Meat Ltd.:

Finance   npdtan92   21   durandal   A month ago

La Maudite Ltd.'s annual returns for the past five years were: 11.5%, 18%, -12%, -16.5%, and 28%. ...

La Maudite Ltd.'s annual returns for the past five years were: 11.5%, 18%, -12%, -16.5%, and 28%. ...

[html]La Maudite Ltd.'s annual returns for the past five years were: 11.5%, 18%, -12%, -16.5%, and 28%. What are the arithmetic and geometric average annual returns for La Maudite over the five-year period?

▸ Arithmetic mean = 4.35%; geometric mean = 5.80%

▸ Arithmetic mean = 17.05%; geometric mean = 17.20%

▸ Arithmetic mean = 5.80%; geometric mean = 4.35%

▸ Arithmetic mean = 17

Finance   mdensmore   20   toastercat   A month ago

The following table shows the closing prices and daily returns of Toronto Skates Inc. over a ...

The following table shows the closing prices and daily returns of Toronto Skates Inc. over a ...

[html]The following table shows the closing prices and daily returns of Toronto Skates Inc. over a week:

Finance   urraberry   16   ecunis1   A month ago

On January 1, you forecasted that there is a 45.0% chance that the price of Edward Bear Inc. shares ...

On January 1, you forecasted that there is a 45.0% chance that the price of Edward Bear Inc. shares ...

[html]On January 1, you forecasted that there is a 45.0% chance that the price of Edward Bear Inc. shares will be $95 in one year while there is a 55.0% chance that the share price will be $35. Six months later, you revised the estimated probability to 25.0% chance of the high state (stock price of $95). If the market agrees with your revised forecasts, what is the expected change i

Finance   Mostafa91   16   itnow96   A month ago

If the closing price of Stock Y was $38.63 on Friday, which was after it had earned daily returns of ...

If the closing price of Stock Y was $38.63 on Friday, which was after it had earned daily returns of ...

If the closing price of Stock Y was $38.63 on Friday, which was after it had earned daily returns of 8.0%, 23.0%, -30.0%, 20.0%, and -5.0% during the week (Monday to Friday), what was the opening price of Stock Y on Monday?

▸ $36.44

▸ $33.00

▸ $17.47

▸ $17.75

Finance   schweet   21   edwardsshe   A month ago

Given the information in the following table, what is the expected return of the security?State of ...

Given the information in the following table, what is the expected return of the security?State of ...

[html]Given the information in the following table, what is the expected return of the security?

Finance   hungry22   22   moyo966   A month ago

You have done a thorough study of the economy and of Stock X and concluded the following ...

You have done a thorough study of the economy and of Stock X and concluded the following ...

[html]You have done a thorough study of the economy and of Stock X and concluded the following probabilities:
•having a boom next year is 20.0%

Finance   unrendezvous   20   apina   A month ago

What is the expected return from an investment that has an equally likely probability to lose half ...

What is the expected return from an investment that has an equally likely probability to lose half ...

What is the expected return from an investment that has an equally likely probability to lose half of the investment or double the investment?

▸ 25%

▸ -50%

▸ 200%

▸ 50%

Finance   karamvir19   21   olskee   A month ago

What is the expected return on a stock that has a 15.0% probability of a 35.0% return, a 20.0% ...

What is the expected return on a stock that has a 15.0% probability of a 35.0% return, a 20.0% ...

What is the expected return on a stock that has a 15.0% probability of a 35.0% return, a 20.0% probability of a 25.0% return, a 50.0% probability of a 15.0% return, and a 15.0% probability of a -20.0% return?

▸ 14.75%

▸ 18.75%

▸ 20.75%

▸ 13.75%

Finance   testipw   19   karatins   A month ago

The income yield and capital gain yield of a stock are 4.90 percent and 7.37 percent, respectively. ...

The income yield and capital gain yield of a stock are 4.90 percent and 7.37 percent, respectively. ...

The income yield and capital gain yield of a stock are 4.90 percent and 7.37 percent, respectively. The stock paid a quarterly dividend of $0.65 per share during the year. What amount was originally paid for the stock?

▸ $53.06

▸ $37.01

▸ $56.97

▸ $35.28

Finance   hcraik2   21   zexman911   A month ago

A share of Oedipus Construction Company was selling for $32.16 one year ago. The stock paid an ...

A share of Oedipus Construction Company was selling for $32.16 one year ago. The stock paid an ...

A share of Oedipus Construction Company was selling for $32.16 one year ago. The stock paid an annual dividend of $0.25 during the year. What is the income yield (dividend yield) for shares of Oedipus Construction Company?

▸ 0.578%

▸ 0.546%

▸ 0.777%

▸ 0.945%

Finance   jake82   19   micp3537   A month ago

A share of Oedipus Construction Company was selling for $32.16 one year ago. The stock paid an ...

A share of Oedipus Construction Company was selling for $32.16 one year ago. The stock paid an ...

A share of Oedipus Construction Company was selling for $32.16 one year ago. The stock paid an annual dividend of $0.25 during the year. What is the capital gain yield if the current share price is $34.02?

▸ 7.77%

▸ 5.78%

▸ 9.45%

▸ 5.46%

Finance   Science220   19   texasboy3   A month ago

A year ago, you bought some shares of CIA Company, which pays equal quarterly dividends. The income ...

A year ago, you bought some shares of CIA Company, which pays equal quarterly dividends. The income ...

A year ago, you bought some shares of CIA Company, which pays equal quarterly dividends. The income yield and the capital gain yield are 4.38 percent and 9.5 percent, respectively. The current price of CIA is $18. What was the quarterly dividend that CIA paid during the year?

▸ $0.72

▸ $0.41

▸ $0.18

▸ $1.64

Finance   luannamw86   19   Juke72   A month ago

The capital gain yield of an equity security is 9.27%. The security paid a quarterly dividend of ...

The capital gain yield of an equity security is 9.27%. The security paid a quarterly dividend of ...

The capital gain yield of an equity security is 9.27%. The security paid a quarterly dividend of $0.55 per share during the year. What is the current price of the security if the total return is 13.76 percent?

▸ $53.54

▸ $13.38

▸ $12.25

▸ $49.00

Finance   Coolguy80   25   deathnature9   A month ago

You made an investment in your RRSP account of $3,000 in an ETF that pays quarterly dividends. The ...

You made an investment in your RRSP account of $3,000 in an ETF that pays quarterly dividends. The ...

[html]You made an investment in your RRSP account of $3,000 in an ETF that pays quarterly dividends. The price of each unit the day you made the investment is $60. The following year you invested another $2,000 in your RRSP account at a price of $ 70 per unit. How much would you have in your account two years after your initial investment if you know that the annual income yield of

Finance   kirstykirst   21   niecey   A month ago

Suppose you have a total return of 8.0% on 500 shares of XYZ Company that you bought for $9,590 last ...

Suppose you have a total return of 8.0% on 500 shares of XYZ Company that you bought for $9,590 last ...

Suppose you have a total return of 8.0% on 500 shares of XYZ Company that you bought for $9,590 last year. XYZ paid four equal quarterly dividends during the year. What would be the quarterly dividend if the current stock price is $18.64 per share?

▸ $0.52

▸ $0.56

▸ $0.50

▸ $0.54

Finance   tweb28   20   fujioki   A month ago

Connie bought 400 shares of ABC Company for $9,288 one year ago. ABC paid a quarterly dividend of ...

Connie bought 400 shares of ABC Company for $9,288 one year ago. ABC paid a quarterly dividend of ...

[html]Connie bought 400 shares of ABC Company for $9,288 one year ago. ABC paid a quarterly dividend of $0.40 per share throughout the year, and is currently trading at $24.85 per share. What are the income yield, capital gain yield, and total return for Connie's investment?

▸ Income yield = 6.89%; capital gain yield = 7.02%; total return = 13.91%

▸ Income yield = 7.02%; capital g

Finance   rasnulx   20   psstone42   A month ago

A stock selling for $20.00 today and expected to have an income (dividend) yield of 3% and a capital ...

A stock selling for $20.00 today and expected to have an income (dividend) yield of 3% and a capital ...

A stock selling for $20.00 today and expected to have an income (dividend) yield of 3% and a capital gain yield of 5% in one year will increase in price to sell at

▸ $20.60.

▸ $21.60.

▸ $20.40.

▸ $21.00.

Finance   bundlecrap   22   xxxmedical   A month ago

A stock selling for $12.00 today and expected to pay a $1.50 dividend and have a capital gain of 5% ...

A stock selling for $12.00 today and expected to pay a $1.50 dividend and have a capital gain of 5% ...

A stock selling for $12.00 today and expected to pay a $1.50 dividend and have a capital gain of 5% in one year will increase in price to sell at

▸ $ 14.10.

▸ $ 15.18.

▸ $ 12.60.

▸ $ 13.50.

Finance   yosie   22   clubber25   A month ago

Sandy paid $47.38 for one share of EMH Company one year ago. The stock paid four quarterly dividends ...

Sandy paid $47.38 for one share of EMH Company one year ago. The stock paid four quarterly dividends ...

[html]Sandy paid $47.38 for one share of EMH Company one year ago. The stock paid four quarterly dividends of $1.00 each during the year, and is selling for $49.50 now. What are the income yield and capital gain yield for EMH over the past year?

▸ Income yield = 4.47%; capital gain yield = 8.44%

▸ Income yield = 4.28%; capital gain yield = 8.08%

▸ Income yield = 8.44%; capital ga

Finance   wasala18   22   Hollywood1971   A month ago

Steve bought a share of Toronto Skates Inc. three years ago for $45.00. He was paid two annual ...

Steve bought a share of Toronto Skates Inc. three years ago for $45.00. He was paid two annual ...

[html]Steve bought a share of Toronto Skates Inc. three years ago for $45.00. He was paid two annual dividends of $4.50 in the past two years. If the stock price today is $ 48.50, which of the following are the three year's income yield (IY), capital gain (CGY), and total return (TR)?

▸ IY = 20.00%, CGY = 7.78%, TR = 27.78%

▸ IY = 20.00%, CGY = 9.26%, TR = 29.26%

▸ IY = 7.78%, CG

Finance   supersour   16   allegri87   A month ago

Steve bought a share of Toronto Skates Inc. three years ago for $45.00. He was paid two annual ...

Steve bought a share of Toronto Skates Inc. three years ago for $45.00. He was paid two annual ...

Steve bought a share of Toronto Skates Inc. three years ago for $45.00. He was paid two annual dividends of $4.50 in the past two years. If the stock price today is $ 48.50, what is the annual holding period return of the stock?

▸ 27.78%

▸ 7.78%

▸ 15.56%

▸ 9.26%

Finance   laywatdut   17   EM81607   A month ago

Laura purchased a share of MVP Company for $26.43 one year ago. The stock paid a quarterly dividend ...

Laura purchased a share of MVP Company for $26.43 one year ago. The stock paid a quarterly dividend ...

Laura purchased a share of MVP Company for $26.43 one year ago. The stock paid a quarterly dividend of $0.50 during the year. What is the capital gain yield if the current stock price is $28.26?

▸ 7.57%

▸ 6.48%

▸ 14.49%

▸ 6.92%

Finance   Passa Caglia   22   ochie92   A month ago