BUS 329 Quiz 7 | Questions and Answers Latest Updated 2026 (Graded
A+) - Murdoch University
Question 1
Complete
Mark 1.00 out of 1.00
3. One of Markowitz model is that errors in estimation of correlation can lead to results.
Select one:
a. Benefit, flexible
b. Problem, risky
c. Difficulty, nonsensical
d. Benefit, optimal
Question 2
Complete
Mark 1.00 out of 1.00
26. Suppose you forecast that the market index will earn a return of 15% in the coming year. Treasury bills are yielding 6%.
The unadjusted beta of Mobil stock is 1.30. A reasonable forecast of the return on Mobil stock for the coming year is
if you use a common method to derive adjusted betas
Select one:
a. 16.00%
b. 15.80%
c. 16.80%
d. 16.20%
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, Question 3
Complete
Mark 1.00 out of 1.00
1. The concept of beta is most closely related to
Select one:
a. Correlation coefficient
b. Mean-variance analysis
c. Non-systematic risk
d. Systematic risk
Question 4
Complete
Mark 1.00 out of 1.00
25. Consider the single-index model. The alpha of a stock is 0%. The return on the market index is 16%. The risk-free rate of
return is 5%. The stock earns a return that exceeds the risk-free rate by 11%, and there are no firm-specific events affecting
the stock performance. The beta of the stock is
Select one:
a. 1.20
b. 1.10
c. 1.00
d. 0.90
Question 5
Complete
Mark 1.00 out of 1.00
28. The security characteristic line (SCL)
Select one:
a. plots the excess return on a security as a function of the excess return on the market
b. allows one to estimate the beta of the security
c. allows one to estimate the alpha of the security
d. all of the above
Dashboard | myMurdoch Advice
A+) - Murdoch University
Question 1
Complete
Mark 1.00 out of 1.00
3. One of Markowitz model is that errors in estimation of correlation can lead to results.
Select one:
a. Benefit, flexible
b. Problem, risky
c. Difficulty, nonsensical
d. Benefit, optimal
Question 2
Complete
Mark 1.00 out of 1.00
26. Suppose you forecast that the market index will earn a return of 15% in the coming year. Treasury bills are yielding 6%.
The unadjusted beta of Mobil stock is 1.30. A reasonable forecast of the return on Mobil stock for the coming year is
if you use a common method to derive adjusted betas
Select one:
a. 16.00%
b. 15.80%
c. 16.80%
d. 16.20%
Dashboard | myMurdoch Advice
, Question 3
Complete
Mark 1.00 out of 1.00
1. The concept of beta is most closely related to
Select one:
a. Correlation coefficient
b. Mean-variance analysis
c. Non-systematic risk
d. Systematic risk
Question 4
Complete
Mark 1.00 out of 1.00
25. Consider the single-index model. The alpha of a stock is 0%. The return on the market index is 16%. The risk-free rate of
return is 5%. The stock earns a return that exceeds the risk-free rate by 11%, and there are no firm-specific events affecting
the stock performance. The beta of the stock is
Select one:
a. 1.20
b. 1.10
c. 1.00
d. 0.90
Question 5
Complete
Mark 1.00 out of 1.00
28. The security characteristic line (SCL)
Select one:
a. plots the excess return on a security as a function of the excess return on the market
b. allows one to estimate the beta of the security
c. allows one to estimate the alpha of the security
d. all of the above
Dashboard | myMurdoch Advice
