Quiz 5

pdf

School

Indiana Institute of Technology *

*We aren’t endorsed by this school

Course

3600

Subject

Finance

Date

Feb 20, 2024

Type

pdf

Pages

3

Uploaded by BarristerLightningElk17

Report
1/12/24, 12:30 PM Review Test Submission: Module 5 Quiz 2023_... TECH (9] e oy evva ey s ol 2023_Fall_FIN3600EOL41 Corporate Finance - 41 Module Five Module 5 Activities and Assessments Review Test Submission: Module 5 Quiz Review Test Submission: Module 5 Quiz User Course Corporate Finance - 41 Test Module 5 Quiz Started 1/12/2412:10 PM Submitted 1/12/2412:29 PM Due Date 1/14/2411:59 PM Status Completed Attempt Score 9 out of 10 points Time Elapsed 18 minutes out of 1 hour Results Displayed Submitted Answers, Correct Answers, Incorrectly Answered Questions Question 1 1 out of 1 points | The greater the risk, the greater the Selected Answer: V) Return Correct Answer: @ Return Question 2 1 out of 1 points 77 | Investors should expect to be compensated for bearing risk, but they should j not expect to be compensated for bearing risk. Selected Answer: V) systematic; unsystematic Correct Answer: V) systematic; unsystematic Question 3 1 out of 1 points < | What is the risk premium? https://blackboard.indianatech.edu/webapps/assessment/review/review.jsp?attempt_id=_4431598_1&course_id=_422729_1&content_id=_3528033_1... 1/3
1/12/24, 12:30 PM Review Test Submission: Module 5 Quiz 2023_... Selected V] Answer: It is the difference in annual returns between common stocks and Treasury bills. Correct (V] Answer: It is the difference in annual returns between common stocks and Treasury bills. Question 4 1 out of 1 points i The additional return offered by a riskier investment relative to a safer one is | called: Selected Answer: V) The risk premium Correct Answer: @ The risk premium Question 5 0 out of 1 points Which of the following is an example of systematic risk? Selected Answer: Q All of the answers is an example of systematic risk. Correct Answer: @ The national trade deficit is higher than expected. Question 6 1 out of 1 points What is the purpose of diversification? Selected Answer: V) Lower the overall risk of your portfolio. Correct Answer: @ Lower the overall risk of your portfolio. Question 7 1 out of 1 points Investors can eliminate what type of risk by diversifying? Selected Answer: @ Unsystematic risk Correct Answer: @ Unsystematic risk Question 8 1 out of 1 points | Which of the following securities poses the greatest financial risk for the investor? I d https://blackboard.indianatech.edu/webapps/assessment/review/review.jsp?attempt_id=_4431598_1&course_id=_422729_18&content_id=_3528033_1... 2/3
1/12/24, 12:30 PM Review Test Submission: Module 5 Quiz 2023_... Selected Answer: ) Common equity Correct Answer: @ Common equity Question 9 1 out of 1 points Inflation, recession, and higher interest rates are economic events that are characterized as: Selected Answer: @ Market risk. Correct Answer: @ Market risk. Question 10 1 out of 1 points Security B has a beta of 1.4, the risk-free rate is 3%, and the expected return on the market is 10%. What is the expected return for Security B? Selected Answer: @ 12.8% Correct Answer: V) 12.8% | Friday, January 12, 2024 12:29:17 PM EST «— OK https://blackboard.indianatech.edu/webapps/assessment/review/review.jsp?attempt_id=_4431598_18&course_id=_422729_1&content_id=_3528033_1... 313
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help