Quiz
Chapter 10
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Perguntas do quiz (28)
1Two of the most important financial analysis concepts are __ & ___
- Arisk
- Bassets
- Creturn
- Dequity
- Einvesting
- Frevenues
2''financial risk'' is present whenever there is some chance of earning a return on an investment that is ____ than the amount expected.
- Aless
- Bmore
3the greater the probability of a return ''far below'' that anticipated, the ___ the risk
- Alesser
- Bgreater
4choose 3.
in their attitude towards investment risk, investors can be- Arisk neutral
- Brisk dependent
- Crisk independent
- Drisk takers
- Erisk averse
- Frisk seeking
- Grisk buyers
5Most investors are ''risk averse'' which means that ___ risk investments require ___ rates of return
it is risk aversion that makes risk concepts so important to financial decision making- Ahigher, higher
- Bhigher, lower
- Clower, higher
6the chance that an event will occur is called its ___ of ___, or just probability
- Aprobability of randomness
- Bprobability of earnings
- Cprobability of occurence
7a ''probability _____'' lists all possible event outcomes along with their probabilities
- Aprobability distribution
- Bprobability effect
- Cprobability toss
8example, a probability distribution a coin toss:
- Aoutcome: head and tail
probability .50 or 50% and .50 or 50% - Boutcome: head and tail
probability .3939249
- Aoutcome: head and tail
9very poor .10 [-10% -20%]
poor .20 [0 0]
average .40 [10 15]
good .20 [20 30]
very good .10 [30 50]- AVerdadeiro
- BFalso
10''expected rate of return'' is estimated ___ an investment is made
- Abefore
- Bater
11after the fact, the return that is actually achieved is called ____ rate of return
- Aexpected rate of return
- Brealized rate of return
12when risk is present, the realized rate of return _____ equals the expected rate of return
rarely- AVerdadeiro
- BFalso
13''stand alone risk'' is defined and measured assuming an investment will be held in ____
- Atogether
- Bisolation
- Can organization
14stand alone risk can be measured by the degree of ____
- Atightness
- Bhow loose it is
15common measure of ''stand alone risk'' is the ____ ___, usually represented by a lower case sigma ___
- Ahigh risk
- Bstandard deviation
- Ca
- Do
- Eb
16what is CV?
- Acoefficient of variation
- Bcoefficient of variables
- Ccoefficient of variance
17the coefficient of variables (cv) is defined as the standard deviation divided by the expected rate of return
for example: CV mri == 11%/10% = 1.1
it is a _____ measure _____ risk- Astandardized measure
- Bfrequent measure
- Cvariance measure
- Dstand alone risk
- Ehigh risk
- Flower risk
- Gindependent risk
18which is riskier?
CV mri = 11%/10% = 1.1
CV clinic = 18%/15%= 1.2
indicates that the clinic investment is riskier than the MRI investment
CV is most useful when comparing investments with widely different returns- AVerdadeiro
- BFalso
19standard deviation (cv) is an applicable risk measure _____ when an investment is held in ______
- Aonly, isolation
- Bnot, place
- Conly, place
20most investments are held as part of a collection, or _____, of investments
- Apaper
- Bwatches
- Cportfolio
- Ddocuments
- Ecomputer
21when investments are held in ''portfolios'', the relevant return, and hence risk, is that of the _____ portfolio
- Aone portfolio
- Bold portfolio
- Centire portfolio
22A, B, C, D (Referring to slide 10-14) are single assets
AB, AC, AD are equal weighted aka 50/50 portfolios of those single assets- AVerdadeiro
- BFalso
23''expected rate of return on a portfolio'' is merely the ___ average
- Ahighest average
- Blowest average
- Cunweighted average
- Dweighted average
- Ebetter average
- Ffastest average
24a ''portfolio's return'' is simply the ''weighted average'' of the returns of the components
however, a ''portfolio's risk'' which is typically measured by standard deviation is ''_____'' the ____weighted______ average of the component of standard deviations
it depends on the ___ among the returns of the portfolio's components- ANOT
- Bdefinitely
- Cperspective
- Ddecision
- Erelationship
25the movement relationship between _____ variable (s) is called _____
- Aone
- Btwo
- Cthree
- Dmore
- Efinancial risk
- Frates of return
- Gcorrelation
26correlatoin is measured by the ''correlation efficient'', _
- Am
- Bp
- Cq
- Dr
- Ed
- Fa
- Go
27r = +1 : perfect positive correlation
r = -1: perfect negative correlation
r= 0 : zero correlation- AVerdadeiro
- BFalso
28it is ''difficult'' to generalize about correlations among investment returns.
however, it is ___ (if not ___ ) to find r = +1 , r = -1, or even r = 0
the correlation between 2 randomly chosen investments is likely to range from +0.4 to + 0.8
''why?''- Aalways, possible
- Bunique, impossible
- Ccertain, possible
- Drare, impossible
- Enecessary, impossible
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- nkhsemail
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