C BU340 Managerial Finance Lesson 8 Exam | Score 100/100 | Ashworth College

[07] Lesson 8 Exam - Results


Attempt 1 of 2

Written Jul 28, 2025 12:11 PM - Jul 28, 2025 12:23 PM




Attempt Score - 100 %
Overall Grade (Highest Attempt) - 100 %




Question 1 points

Which of the following statements is TRUE about variance?


a) Variance describes how spread out a set of numbers or values are
around its mean or average.

b) Variance is essentially the variability from the average.


c) The larger the variance, the greater the dispersion.


d) All of the above statements are true.



Question 2 points

Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an
expected return of 13.1%. Asset C has a beta of .50 and an expected return of
7.5%. The risk-free rate is 4% and the expected return on the market portfolio

, is 11%. If you wish to hold a portfolio consisting of assets B and C, and have a
portfolio beta equal to 1.0, what proportion of the portfolio must be in asset
C?


a) 0.375


b) 0.50


c) 0.625


d) 0.75



Question 3 points

Stocks A, B, C, and D have returns of 10%, 20%, 30%, and 40%, respectively.
What is their variance?


a) 66.67%


b) 166.67%


c) 4.08%


d) 2.15%



Question 4 points

The security market line has: