5513 MID-exam

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 5513 MID-exam Essay

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Scholar ID

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The College or university of New To the south Wales

University of Financial and Financial

FINS 5513: Investments and Portfolio Variety

Mid-Session Test Examination Period 1, 2013

Time Allowed: 2 Hours

Studying Time: five minutes

All internet pages of this exam must be came back

This exam contains 3 questions in 2 portions and has 35 total marks: •

•

twenty multiple-choice inquiries, each problem carries you mark, 20 total marks; 3 short-answer questions, every single question bears 5 represents, 15 total marks;

Instructions:

1 . Compose your name and student quantity and sign on the top of the page. installment payments on your Attempt your concerns.

3. Indicate your reply to the multiple choice questions in pencil for the generalized answer sheet offered.

4. Create your response to the calculation questions in ink inside the booklet provided. 5. This paper is usually not to become retained by simply students.

six. You may employ your own calculator, tend to be not allowed to work with any other supplies.

Part 1: Multiple Choice Questions (20 marks, each question may be worth one point) Mark plainly the correct response on the multiple choice solution sheet. 1 . Assume you purchased 200 stocks and shares of GE common share on perimeter at seventy dollars per talk about from your broker. If the first margin is 55%, just how much did you borrow from the broker? A. $6, 500

B. $4, 000

C. $7, 700

D. $7, 000

At the. $6, three hundred

2 . You purchased shares of any mutual account at an amount of $20 per reveal at the beginning of 12 months and paid a front end load of 5. 74%. If the investments in which the finance invested increased in worth by 11% during the year, as well as the fund's expenditure ratio was 1 . 25%, your go back if you sold the finance at the end in the year can be ____________%.

A. 4. thirty-three

B. several. 44

C. 2 . forty five

D. six. 87

Electronic. 5. 16

3. Which of the following statements relating to closed-end shared funds can be false? A. The money sometimes trade at a discount via NAV.

N. The cash are sold at the prevailing selling price.

C. The funds offer investors professional management.

G. The funds redeem stocks at their particular NAV.

Elizabeth. The money sometimes operate at reduced to NAVIGATION.

4. The fee that mutual cash use to help pay for promoting and marketing literature is referred to as a A. front-end load fee.

B. back-end fill fee.

C. operating charge fee.

M. 12b-1 fee.

E. organised fee.

You have been given this kind of probability distribution for the holding-period returning for Dairy products, Inc inventory:

5. Let's assume that the expected return in Cheese's share is 14. 35%, what is the standard deviation of these earnings?

A. some. 72%

W. 6. thirty percent

C. 5. 38%

Deb. 5. 74%

E. six. 67%

6. When comparing investments with different perimetre the ____________ provides the more accurate comparison.

A. arithmetic typical

B. powerful annual price

C. average annual return

D. apr

E. geometric return

7. Which of the following assertions is (are) false?

I) Risk-averse shareholders reject investments that are reasonable games. II) Risk-neutral shareholders judge dangerous investments only by the expected returns. III) Risk-averse shareholders judge opportunities only by their riskiness. IV) Risk-loving traders will not participate in fair games.

A. We only

M. II simply

C. I and II only

G. II and III simply

E. III, and 4 only

almost 8. A stock portfolio has an expected rate of return of 0. 12-15 and a normal deviation of 0. 15. The free of risk rate is 6 percent. An investor has got the following energy function: U = E(r) - (A/2)s2. Which worth of A causes this investor unsociable between the high-risk portfolio plus the risk-free advantage? A. a few

B. 6

C. six

D. eight

E. one particular

9. The expected go back of a portfolio of high-risk securities

A. is a weighted average in the securities' returns.

B. is the sum in the securities' results.

C. is a weighted quantity of the securities' variances and covariances. D. is the two a measured average in the securities' returns and a weighted amount of the securities' variances and covariances.

E. is the measured sum of the securities' covariances.

10. Which will of the next is not only a source of methodical risk? A. The...

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