Quiz 3 - Portfolio Theory (Part 2) - Deadline 11.55pm AEST 15 August Attempt review PDF

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Investment And Portfolio Management FIN3IPM online quiz...

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12/8/2021

Quiz 3 - Portfolio Theory (Part 2) - Deadline 11.55pm AEST 15 August: Attempt review

My LMS Subjects / 2021-FIN3IPM(BU-2/SY-2/VH-2) / Assessment / Quiz 3 - Portfolio Theory (Part 2) - Deadline 11.55pm AEST 15 August

Friday, 13 August 2021, 2:19 AM Finished Friday, 13 August 2021, 2:35 AM 15 mins 2 secs out of 5 (

%)

Question 1 Correct Mark 1 out of 1

Which of the following graphs shows the Capital Market Line?

Select one: a. Graph A b. Graph B



c. Graph C d. Graph D

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12/8/2021

Quiz 3 - Portfolio Theory (Part 2) - Deadline 11.55pm AEST 15 August: Attempt review

Question 2 Incorrect Mark 0 out of 1

How can you reduce the unsystematic risk of a portfolio? Select one: a. Add low-sigma stocks to the portfolio.



b. Add stocks with a low correlation coecient with existing stocks in the portfolio. c. Add low-beta stocks to the portfolio. d. Add low-alpha stocks to the portfolio.

Question 3 Correct Mark 1 out of 1

A stock has a beta of 1.0 and a standard deviation of 15.0%. The market has a standard deviation of 5.4%. What is the stock's correlation with the market? a. 0.03 b. 0.18 c. 0.36



d. 0.61

Question 4 Correct Mark 1 out of 1

A stock has a beta of 1.88 and a variance of 0.029241. The variance of the market is 0.005929. What is the value of the stock's systematic risk? a. 0.008486 b. 0.021103 c. 0.008286 d. 0.020955

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12/8/2021

Quiz 3 - Portfolio Theory (Part 2) - Deadline 11.55pm AEST 15 August: Attempt review

Question 5 Correct Mark 1 out of 1

Stock

E(R)

σ

β

A

17.8%

19.6%

2.2

B

13.2%

31.8%

0.8

What the Sharpe ratio for Stock B? 

a. 0.29 b. 0.23 c. 0.32 d. 0.27

Quiz 2 - Portfolio Theory (Part 1) - Deadline 11.55pm AEST 8 August Jump to... Quiz 4 - Asset Pricing Theories - Deadline 11.55pm AEST 22 August ▶

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