A fairly priced stock has a beta that is the same as the market portfolio's beta. Treasury bonds yield 5% pa and the market portfolio's expected return is 10% pa. What is the expected return of the stock?
Total cash flows can be broken into income and capital cash flows. What is the name given to the income cash flow from owning shares?
A credit card company advertises an interest rate of 18% pa, payable monthly. Which of the following statements about the interest rate is NOT correct? All rates are given to four decimal places.
The 'time value of money' is most closely related to which of the following concepts?
Question 800 leverage, portfolio return, risk, portfolio risk, capital structure, no explanation
Which of the following assets would you expect to have the highest required rate of return? All values are current market values.
A stock's returns are normally distributed with a mean of 10% pa and a standard deviation of 20 percentage points pa. What is the 95% confidence interval of returns over the next year? Note that the Z-statistic corresponding to a one-tail:
- 90% normal probability density function is 1.282.
- 95% normal probability density function is 1.645.
- 97.5% normal probability density function is 1.960.
The 95% confidence interval of annual returns is between:
Question 963 Bretton Woods, foreign exchange rate, foreign exchange system history, no explanation
Under the Bretton Woods System (1944 to 1971), currencies were priced relative to: