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