Fight Finance

(a) 0.0374

(b) 0.0604

(c) 0.1204

(d) 0.1250

(e) 0.1411

(a) Stock A has less systematic risk than stock B, so stock A's return should be less than stock B's.

(b) Stock B has the same systematic risk as the market, so its return should be the same as the market's.

(c) Stock B has the same beta as the market, so it also has the same total risk as the market.

(d) If stock A and B were combined in a portfolio with weights of 50% each, the beta of the portfolio would be 0.75.

(e) Stocks A and B have more systematic risk than the risk free security (government bonds) so their return should be greater than the risk free rate.

(a) A positive NPV.

(b) A zero NPV.

(c) A negative NPV.

(d) A large amount of diversifiable risk.

(e) Zero diversifiable risk.

(a) Markets are weak and semi-strong form efficient but strong-form inefficient.

(b) Markets are weak form efficient but semi-strong and strong-form inefficient.

(c) Chartists make negative excess returns.

(d) Insiders make positive excess returns.

(e) Insiders make negative excess returns.

(a) $114.7202

(b) $114.8775

(c) $122.9398

(d) $126.628

(e) $174.3874

(a) Option premium is another name for option price.

(b) An option contract's price is always changing.

(c) Strike price is another name for exercise price.

(d) An option contract's strike price is always changing.

(e) Call and put option premiums are paid at the start when the option is bought. Call option exercise prices are paid when they are exercised, usually at maturity.

It's possible for both parties in a futures or forward contract to be hedging, so neither are speculating. or ?

(a) 970

(b) 1,530

(c) 1,552

(d) 2,487

(e) 2,522

(a) Dollars ($).

(b) Dollars per day ($/day).

(c) Dollars per day squared ($/day^2).

(d) Dollars squared per day ($^2/day).

(e) Dollars squared per day squared ($^2/day^2).

(a) $1376 billion

(b) $1696 billion

(c) $1728 billion

(d) $2040 billion

(e) $2384 billion