Topic: Risk
32.
You have been given this probability distribution for the holding-period return for Cheese,
Inc. stock:
Assuming that the expected return on Cheese’s stock is 14.35%, what is the standard
deviation of these returns?
33.
An investor purchased a bond 45 days ago for $985. He received $15 in interest and sold
the bond for $980. What is the holding-period return on his investment?
34.
An investor purchased a bond 63 days ago for $980. He received $17 in interest and sold
the bond for $987. What is the holding-period return on his investment?
35.
Over the past year you earned a nominal rate of interest of 8% on your money. The
inflation rate was 3.5% over the same period. The exact actual growth rate of your
purchasing power was
36.
Over the past year you earned a nominal rate of interest of 14% on your money. The
inflation rate was 2% over the same period. The exact actual growth rate of your
purchasing power was
37.
Over the past year you earned a nominal rate of interest of 12.5% on your money. The
inflation rate was 2.6% over the same period. The exact actual growth rate of your
purchasing power was
38.
A year ago, you invested $1,000 in a savings account that pays an annual interest rate of
6%. What is your approximate annual real rate of return if the rate of inflation was 2% over
the year?
39.
A year ago, you invested $10,000 in a savings account that pays an annual interest rate of
3%. What is your approximate annual real rate of return if the rate of inflation was 4% over
the year?
40.
A year ago, you invested $2,500 in a savings account that pays an annual interest rate of
5.7%. What is your approximate annual real rate of return if the rate of inflation was 1.6%
over the year?
41.
A year ago, you invested $2,500 in a savings account that pays an annual interest rate of
2.5%. What is your approximate annual real rate of return if the rate of inflation was 3.4%
over the year?
42.
A year ago, you invested $12,000 in an investment that produced a return of 18%. What is
your approximate annual real rate of return if the rate of inflation was 2% over the year?
43.
If the annual real rate of interest is 3.5% and the expected inflation rate is 2.5%, the
nominal rate of interest would be approximately
44.
If the annual real rate of interest is 2.5% and the expected inflation rate is 3.4%, the
nominal rate of interest would be approximately
45.
If the annual real rate of interest is 4% and the expected inflation rate is 3%, the nominal
rate of interest would be approximately
46.
You purchased a share of stock for $12. One year later you received $0.25 as a dividend
and sold the share for $12.92. What was your holding-period return?
47.
You purchased a share of stock for $120. One year later you received $1.82 as a dividend
and sold the share for $136. What was your holding-period return?
48.
You purchased a share of stock for $65. One year later you received $2.37 as a dividend
and sold the share for $63. What was your holding-period return?
49.
You have been given this probability distribution for the holding-period return for a stock:
What is the expected holding-period return for the stock?
50.
You have been given this probability distribution for the holding-period return for a stock:
What is the expected standard deviation for the stock?
51.
You have been given this probability distribution for the holding-period return for a stock:
What is the expected variance for the stock?
52.
Which of the following measures of risk best highlights the potential loss from extreme
negative returns?
53.
Over the past year you earned a nominal rate of interest of 3.6% on your money. The
inflation rate was 3.1% over the same period. The exact actual growth rate of your
purchasing power was
54.
A year ago, you invested $1,000 in a savings account that pays an annual interest rate of
4.3%. What is your approximate annual real rate of return if the rate of inflation was 3%
over the year?
55.
If the annual real rate of interest is 3.5% and the expected inflation rate is 3.5%, the
nominal rate of interest would be approximately
56.
You purchased a share of CSCO stock for $20. One year later you received $2 as a
dividend and sold the share for $31. What was your holding-period return?
57.
You have been given this probability distribution for the holding-period return for GM
stock:
What is the expected holding-period return for GM stock?
58.
You have been given this probability distribution for the holding-period return for GM
stock:
What is the expected standard deviation for GM stock?