APU FINC600 Week 3 Quiz 2016
Question 1 of 15
Which of the following portfolios have the least risk?
A.A portfolio of Treasury bills
B.A portfolio of long-term United States Government bonds
C. Portfolio of U.S. common stocks of small firms
D. None of the above
Question 2 of 15
If the average annual rate of return for common stocks is 11.7%, and for treasury bills it is 4.0%,
what is the market risk premium?
A.15.8%
B.4.1%
C.7.7%
D. None of the above
11.7%-4.1%=7.6%
Question 3 of 15
Spill Oil Company's stocks had -8%, 11% and 24% rates of return during the last three years
respectively; calculate the average rate of return for the stock.
A.8% per year
B.9% per year
C.11% per year
Question 1 of 15
Which of the following portfolios have the least risk?
A.A portfolio of Treasury bills
B.A portfolio of long-term United States Government bonds
C. Portfolio of U.S. common stocks of small firms
D. None of the above
Question 2 of 15
If the average annual rate of return for common stocks is 11.7%, and for treasury bills it is 4.0%,
what is the market risk premium?
A.15.8%
B.4.1%
C.7.7%
D. None of the above
11.7%-4.1%=7.6%
Question 3 of 15
Spill Oil Company's stocks had -8%, 11% and 24% rates of return during the last three years
respectively; calculate the average rate of return for the stock.
A.8% per year
B.9% per year
C.11% per year
