公司理财精要第十一章题库.doc

Chapter 11 - Risk and Return 11- PAGE 1 Chapter 11 Risk and Return ? Multiple Choice Questions? 1.?Mary owns a risky stock and anticipates earning 16.5 percent on her investment in that stock. Which one of the following best describes the 16.5 percent rate??A.?Expected returnB.?Real returnC.?Market rateD.?Systematic returnE.?Risk premium ? 2.?Which one of the following best describes a portfolio??A.?Risky securityB.?Security equally as risky as the overall marketC.?New issue of stockD.?Group of assets held by an investorE.?Investment in a risk-free security ? 3.?Stock A comprises 28 percent of Susans portfolio. Which one of the following terms applies to the 28 percent??A.?Portfolio varianceB.?Portfolio standard deviationC.?Portfolio weightD.?Portfolio expected returnE.?Portfolio beta ? 4.?Which one of the following describes systemic risk??A.?Risk that affects a large number of assetsB.?An individual securitys total riskC.?Diversifiable riskD.?Asset specific riskE.?Risk unique to a firms management ? 5.?Which of the following terms can be used to describe unsystematic risk?I. asset-specific riskII. diversifiable riskIII. market riskIV. unique risk?A.?I and IV onlyB.?II and III onlyC.?I, II, and IV onlyD.?II, III, and IV onlyE.?I, II, III, and IV ? 6.?Which one of the following terms best refers to the practice of investing in a variety of diverse assets as a means of reducing risk??A.?SystematicB.?UnsystematicC.?DiversificationD.?Security market lineE.?Capital asset pricing model ? 7.?The systematic risk principle states that the expected return on a risky asset depends only on which one of the following??A.?Unique riskB.?Diversifiable riskC.?Asset-specific riskD.?Market riskE.?Unsystematic risk ? 8.?Which one of the following measures the amount of systematic risk present in a particular risky asset relative to that in an average risky asset??A.?Squared deviationB.?Beta coefficientC.?Standard deviationD.?MeanE.?Varia