Score for this quiz: 202 out of 220
Submitted Dec 5 at 8:44pm
This attempt took 50 minutes.
Question 1
pts
This is defined as the portion of total risk that is not diversifiable.
market risk
total risk
modern portfolio risk
firm specific risk
Question 2
pts
A company has a beta of 3.75. If the market return is expected to be 20 percent and the
risk-free rate is 9.5 percent, what is the company's required return?
48.875%
55.625%
39.375%
33.25%
, Question 3
pts
TJ Industries has revenue of $400,000 and expenses of $250,000. The depreciation
cost is $80,000 and marginal tax rate is 35%. Calculate cash flow from operation.
$45,500
$125, 500
$135,000
$150,000
Question 4
pts
Compute the expected return given these three economic states, their likelihoods, and
the potential returns: Fast Growth State has a probability of 0.3 and 40% return. Slow
Growth State has a probability of 0.4 and 15% return. Recession State has a probability
of 0.3 and -15% return.
13.50%
21.34%
7.1%
38.95%
Submitted Dec 5 at 8:44pm
This attempt took 50 minutes.
Question 1
pts
This is defined as the portion of total risk that is not diversifiable.
market risk
total risk
modern portfolio risk
firm specific risk
Question 2
pts
A company has a beta of 3.75. If the market return is expected to be 20 percent and the
risk-free rate is 9.5 percent, what is the company's required return?
48.875%
55.625%
39.375%
33.25%
, Question 3
pts
TJ Industries has revenue of $400,000 and expenses of $250,000. The depreciation
cost is $80,000 and marginal tax rate is 35%. Calculate cash flow from operation.
$45,500
$125, 500
$135,000
$150,000
Question 4
pts
Compute the expected return given these three economic states, their likelihoods, and
the potential returns: Fast Growth State has a probability of 0.3 and 40% return. Slow
Growth State has a probability of 0.4 and 15% return. Recession State has a probability
of 0.3 and -15% return.
13.50%
21.34%
7.1%
38.95%
