FIN 402 Expect Success/uophelp.com FIN 402 Expect Success/uophelp.com | Page 18

4. You have a $50,000 portfolio consisting of Intel, GE and Con Edison.
You put $20,000 in Intel, $12,000 in GE and the rest in Con Edison. Intel,
GE and Con Edison have betas of 1.3, 1.0 and 0.8 respectively. What is
your portfolio beta?
5. You put up $50 at the beginning of the year for an investment. The
value of the investment grows 4% and you earn a dividend of $3.50. Your
HPR was
6. Rank the following from highest average historical return to lowest
average historical return from 1926-2006.
7. Rank the following from highest average historical standard deviation to
lowest average historical standard deviation from 1926-2006.
8. The geometric average of -12%, 20% and 25% is __________.
9. Suppose you pay $9,700 for a $10,000 par Treasury bill maturing in
three months. What is the holding period return for this investment?
10. Your investment has a 20% chance of earning a 30% rate of return, a
50% chance of earning a 10% rate of return and a 30% chance of losing
6%. What is your expected return on this investment?
11. A portfolio with a 25% standard deviation generated a return of 15%
last year when T-bills were paying 4.5%. This portfolio had a Sharpe
measure of _____.
12. The term excess-return refers to _______________.
13. The probability of an adverse outcome is a definition of
14. A portfolio is considered to be efficient if:
15. A positive relationship between expected return and expected risk is
consistent
with