Homework Answers
Answer is False.
Diversification would have the maximum positive effect on volatility of portfolio when the correlation coefficient between securities in portfolio is -1. When the correlation coefficient is +1, diversification would have minimal effect or impact on overall portfolio volatility.
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QUESTION 25 You invest the same dollar amount in 5 different securities. All else equal diversification produces th...
QUESTION 23 When a bond's coupon rate is less than its yield-to-maturity the bond will be...
QUESTION 23 When a bond's coupon rate is less than its yield-to-maturity the bond will be a discount bond. True False QUESTION 24 Exposure to non-systematic risk is rewarded with higher expected return. Conversely, exposure to systematic risk is not rewarded with higher expected returns True False QUESTION 25 You invest the same dollar amount in 5 different securities. All else equal, diversification produces the greatest benefits if the correlation coefficients for the returns of the 5 securities are close...
please answer all 3!! QUESTION 25 Rutures contracts are traded on organized exchanges while forward contracts...
please answer all 3!!
QUESTION 25 Rutures contracts are traded on organized exchanges while forward contracts are not True false QUESTION 26 Assume that you can invest an equal dollar amount in four different securities. Holding allelse equal, the benefits of diversification are greatest if the returns for your four securities have higher rather than lower, correlation coefficients True False QUESTION 27 Gilead Sciences has 15 year bond with par value of 1.000 and a coupon coupon payments are manual....
All else equal, when a manager is choosing between two payment plans, a profit-maximizing manager should...
All else equal, when a manager is choosing between two payment plans, a profit-maximizing manager should chose the plan with the lowest present value. In order to analyze costs and benefits that are paid and received at different times, they must be valued at ________ in time as funds received or paid in the future are worth ________ than the same amount received or paid today. Select one: A. different points; less B. a single point; more C. a single...
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is...
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is invested in eadh stock C) As the number of stocks in a portfolio grows large, the variance of the portfolio is determined primarily by the average covariance among the stocks D) When combining stocks into a portfolio that puts positive weight on each stock, unless...
Question 22 (5 points) All else being equal that is, identical present value, identical number of...
Question 22 (5 points) All else being equal that is, identical present value, identical number of periods and identical interest rate), the periodic payment of an ordinary annuity will be higher than the payment of an annuity due. True False Page 17 of 20 Previous Page Next Page Question 20 (5 points) You have been sued. If you lose the case, you will have to pay $10,000 three years from now. If you win the case, you will not pay...
Can you please help me with this study guide question? 1. Six different particles are all...
Can you please help me with this study guide
question?
1. Six different particles are all launched into a magnetic field at the same speed of one ten-thousandth the speed of light (v 3.0 x 1o4m/s). The magnetic field is uniform and into the page. a. (1pt) Which of the particles are positively charged? b. (1pt) If all the particles have the same magnitude of charge, which particle has the greatest mass (ignore particle D for this question)? c. (1pt)...
Could someone please tell me the answer and providing reasoning as to why? You perform three different reactions at cons...
Could someone please tell me the answer and providing reasoning
as to why?
You perform three different reactions at constant pressure and note the heat associated with the three reactions are equal. Reaction 1 produces gas, reaction 2 consumes it and reaction 3 has no gaseous substances as reactants or products. Which statement below is true? Note: Greatest refers to the value, not the magnitude, so -2 is greater than -5 and 1 is greater than both Select one: a....
Question 5 1 pts Investors expect deflation to occur (i.e., you expect a negative rate of...
Question 5 1 pts Investors expect deflation to occur (i.e., you expect a negative rate of inflation also called deflation). Holding all other inputs constant, which of the following statements is/are true given that expectation? The slope of the security market line (SML) will increase. The slope of the security market line (SML) will decrease. O The expected returns on all securities will increase. The expected returns on all securities will decrease. O More than one of the above will...
Suppose the national average dollar amount for an automobile insurance claim is $788.5. You work for...
Suppose the national average dollar amount for an automobile insurance claim is $788.5. You work for an agency in Michigan and you are interested in whether or not the state average is greater than the national average. The hypotheses for this scenario are as follows: Null Hypothesis: μ ≤ 788.5, Alternative Hypothesis: μ > 788.5. You take a random sample of claims and calculate a p-value of 0.0851 based on the data, what is the appropriate conclusion? Conclude at the...
luck! Question 3 All else being equal, which of the following statement about time value of...
luck! Question 3 All else being equal, which of the following statement about time value of money is NOT correct? The higher the discount rate, the lower the present value The higher the interest rate, the higher the future value The higher the number of periods, the lower the present value The higher the present value, the lower the future value - Previous Quiz sa required precision (ie, the number of digits after the decimal point). Good luck! Question 4...
QUESTION 23 When a bond's coupon rate is less than its yield-to-maturity the bond will be a discount bond. True False QUESTION 24 Exposure to non-systematic risk is rewarded with higher expected return. Conversely, exposure to systematic risk is not rewarded with higher expected returns True False QUESTION 25 You invest the same dollar amount in 5 different securities. All else equal, diversification produces the greatest benefits if the correlation coefficients for the returns of the 5 securities are close...
please answer all 3!!
QUESTION 25 Rutures contracts are traded on organized exchanges while forward contracts are not True false QUESTION 26 Assume that you can invest an equal dollar amount in four different securities. Holding allelse equal, the benefits of diversification are greatest if the returns for your four securities have higher rather than lower, correlation coefficients True False QUESTION 27 Gilead Sciences has 15 year bond with par value of 1.000 and a coupon coupon payments are manual....
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is invested in eadh stock C) As the number of stocks in a portfolio grows large, the variance of the portfolio is determined primarily by the average covariance among the stocks D) When combining stocks into a portfolio that puts positive weight on each stock, unless...
Question 22 (5 points) All else being equal that is, identical present value, identical number of periods and identical interest rate), the periodic payment of an ordinary annuity will be higher than the payment of an annuity due. True False Page 17 of 20 Previous Page Next Page Question 20 (5 points) You have been sued. If you lose the case, you will have to pay $10,000 three years from now. If you win the case, you will not pay...
Can you please help me with this study guide
question?
1. Six different particles are all launched into a magnetic field at the same speed of one ten-thousandth the speed of light (v 3.0 x 1o4m/s). The magnetic field is uniform and into the page. a. (1pt) Which of the particles are positively charged? b. (1pt) If all the particles have the same magnitude of charge, which particle has the greatest mass (ignore particle D for this question)? c. (1pt)...
Could someone please tell me the answer and providing reasoning
as to why?
You perform three different reactions at constant pressure and note the heat associated with the three reactions are equal. Reaction 1 produces gas, reaction 2 consumes it and reaction 3 has no gaseous substances as reactants or products. Which statement below is true? Note: Greatest refers to the value, not the magnitude, so -2 is greater than -5 and 1 is greater than both Select one: a....
Question 5 1 pts Investors expect deflation to occur (i.e., you expect a negative rate of inflation also called deflation). Holding all other inputs constant, which of the following statements is/are true given that expectation? The slope of the security market line (SML) will increase. The slope of the security market line (SML) will decrease. O The expected returns on all securities will increase. The expected returns on all securities will decrease. O More than one of the above will...
luck! Question 3 All else being equal, which of the following statement about time value of money is NOT correct? The higher the discount rate, the lower the present value The higher the interest rate, the higher the future value The higher the number of periods, the lower the present value The higher the present value, the lower the future value - Previous Quiz sa required precision (ie, the number of digits after the decimal point). Good luck! Question 4...
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