Fight Finance

Courses  Tags  Random  All  Recent  Scores

Question 235  SML, NPV, CAPM, risk

The security market line (SML) shows the relationship between beta and expected return.

Investment projects that plot on the SML would have:



Question 236  diversification, correlation, risk

Diversification in a portfolio of two assets works best when the correlation between their returns is:



Question 276  derivative terminology, option

The 'option strike price' in an option contract, also known as the exercise price, is paid at the start when the option contract is agreed to. or ?


Question 403  PE ratio, no explanation

Which of the following investable assets is the LEAST suitable for valuation using PE multiples techniques?



Question 490  expected and historical returns, accounting ratio

Which of the following is NOT a synonym of 'required return'?



Question 540  APR, effective rate, no explanation

Which one of the below statements about effective rates and annualised percentage rates (APR's) is NOT correct?



Question 564  covariance

What is the covariance of a variable X with a constant C?

The cov(X, C) or ##\sigma_{X,C}## equals:



Question 659  APR, effective rate, effective rate conversion, no explanation

A home loan company advertises an interest rate of 9% pa, payable monthly. Which of the following statements about the interest rate is NOT correct? All rates are given with an accuracy of 4 decimal places.



Question 677  option, option profit, no explanation

Which of the below formulas gives the profit ##(\pi)## from being long a put option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LP,0}##. Note that ##S_T##, ##X_T## and ##f_{LP,0}## are all positive numbers.



Question 694  utility

Which of the below statements about utility is NOT generally accepted by economists? Most people are thought to: