Discuss on Long-term government bonds
1. Which one of the following categories of securities had the highest average return for the period 1926–2013?
A. Long-term government bonds
B. Small-company stocks
C. Long-term corporate bonds
D. Large-company stocks
2. A stock has a beta of 1.2 and an expected return of 17 percent. A risk-free asset currently earns 5.1 percent. The beta of a portfolio comprised of these two assets is 0.85. What percentage of the portfolio is invested in the stock?
A. 92 percent
B. 77 percent
C. 71 percent
D. 81 percent
3. _______ market efficiency suggests that at a minimum, the current price of the stock reflects the stock’s own past prices.
A. Weak form
B. Strong form
C. Semistrong
D. Loose form
4. Six months ago, you purchased 100 shares of stock in Global Trading at a price of $38.70 a share. The stock pays a quarterly dividend of $.15 a share. Today, you sold all of your shares for $40.10 per share. What’s the total amount of your dividend income on this investment?
A. $15
B. $45
C. $50
D. $30
1. Which one of the following categories of securities had the highest average return for the period 1926–2013?
A. Long-term government bonds
B. Small-company stocks
C. Long-term corporate bonds
D. Large-company stocks
2. A stock has a beta of 1.2 and an expected return of 17 percent. A risk-free asset currently earns 5.1 percent. The beta of a portfolio comprised of these two assets is 0.85. What percentage of the portfolio is invested in the stock?
A. 92 percent
B. 77 percent
C. 71 percent
D. 81 percent
3. _______ market efficiency suggests that at a minimum, the current price of the stock reflects the stock’s own past prices.
A. Weak form
B. Strong form
C. Semistrong
D. Loose form
4. Six months ago, you purchased 100 shares of stock in Global Trading at a price of $38.70 a share. The stock pays a quarterly dividend of $.15 a share. Today, you sold all of your shares for $40.10 per share. What’s the total amount of your dividend income on this investment?
A. $15
B. $45
C. $50
D. $30