BUS 329 Quiz 5 | Questions and Answers Latest Updated 2026 (Graded A+) - Murdoch University
Question 1
Incorrect
19. An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.15
Mark 0.00 out
and a standard deviation of 4% and 70% in a T-bill that pays 6%. The standard deviation of his
of 1.00
portfolio is:
Select one:
a. 6%
b. 2.8%
c. 1.2%
d. 4%
Question 2
Correct
16. Which of the following statements is TRUE?
Mark 1.00 out
of 1.00
Select one:
a. An investor would prefer a portfolio on the higher indifference curve
b. Portfolio on higher indifference curve offer a higher expected return for any given level of
risk
c. Portfolio on higher indifference curve offer lower risk for any given level of expected
return.
d. All of the above
Question 3
Correct
1. investors reject investment portfolios that are or
Mark 1.00 out
of 1.00
Select one:
a. Portfolio, risky, low return
b. Risk averse, risky, low return
c. Portfolio, fair game, worse
d. Risk averse, fair game, worse Dashboard | myMurdoch Advice
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, Question 4
Correct
5. Which of the following statements is TRUE?
Mark 1.00 out
of 1.00
Select one:
a. If the risk premium of a portfolio is zero or negative, its certainty equivalent rate will be
below that of the risk-free alternative for any risk-averse investor.
b. If the risk premium of a portfolio is zero or positive, its certainty equivalent rate will be
below that of the risk-free alternative for any risk-averse investor.
c. If the risk premium of a portfolio is zero or negative, its certainty equivalent rate will be
above that of the risk-free alternative for any risk-averse investor.
d. If the risk premium of a portfolio is zero or negative, its certainty equivalent rate will be
below that of the risk-free alternative for any risk-seeker investor.
Question 5
Correct
30. The value of risk aversion in utility function for risk-averse, risk-lover and risk-neutral investors
Mark 1.00 out
are
of 1.00
Select one:
a. Less than zero, zero and greater than zero respectively
b. Greater than zero, less than zero and zero respectively
c. Greater than zero, zero and less than zero respectively
d. Zero, less than zero and greater than zero respectively
Question 6
Correct
18. Given the capital allocation line, an investor's optimal portfolio is the portfolio that
Mark 1.00 out
of 1.00
Select one:
a. Maximises her expected profit
b. Maximises risk
c. Minimises both her risk and return
d. Maximises her expected utility
Dashboard | myMurdoch Advice
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Question 1
Incorrect
19. An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.15
Mark 0.00 out
and a standard deviation of 4% and 70% in a T-bill that pays 6%. The standard deviation of his
of 1.00
portfolio is:
Select one:
a. 6%
b. 2.8%
c. 1.2%
d. 4%
Question 2
Correct
16. Which of the following statements is TRUE?
Mark 1.00 out
of 1.00
Select one:
a. An investor would prefer a portfolio on the higher indifference curve
b. Portfolio on higher indifference curve offer a higher expected return for any given level of
risk
c. Portfolio on higher indifference curve offer lower risk for any given level of expected
return.
d. All of the above
Question 3
Correct
1. investors reject investment portfolios that are or
Mark 1.00 out
of 1.00
Select one:
a. Portfolio, risky, low return
b. Risk averse, risky, low return
c. Portfolio, fair game, worse
d. Risk averse, fair game, worse Dashboard | myMurdoch Advice
/
, Question 4
Correct
5. Which of the following statements is TRUE?
Mark 1.00 out
of 1.00
Select one:
a. If the risk premium of a portfolio is zero or negative, its certainty equivalent rate will be
below that of the risk-free alternative for any risk-averse investor.
b. If the risk premium of a portfolio is zero or positive, its certainty equivalent rate will be
below that of the risk-free alternative for any risk-averse investor.
c. If the risk premium of a portfolio is zero or negative, its certainty equivalent rate will be
above that of the risk-free alternative for any risk-averse investor.
d. If the risk premium of a portfolio is zero or negative, its certainty equivalent rate will be
below that of the risk-free alternative for any risk-seeker investor.
Question 5
Correct
30. The value of risk aversion in utility function for risk-averse, risk-lover and risk-neutral investors
Mark 1.00 out
are
of 1.00
Select one:
a. Less than zero, zero and greater than zero respectively
b. Greater than zero, less than zero and zero respectively
c. Greater than zero, zero and less than zero respectively
d. Zero, less than zero and greater than zero respectively
Question 6
Correct
18. Given the capital allocation line, an investor's optimal portfolio is the portfolio that
Mark 1.00 out
of 1.00
Select one:
a. Maximises her expected profit
b. Maximises risk
c. Minimises both her risk and return
d. Maximises her expected utility
Dashboard | myMurdoch Advice
/
