FIN 550: Midterm Exam on Investment and Portfolio Management
A midterm exam on investment strategies and portfolio management, with a focus on building diversified portfolios and assessing risk.
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FIN 550: Midterm Exam on Investment and Portfolio Management
FIN 550 MIDTERM EXAM
Question 1
The uncertainty of investment returns associated with how a firm finances its investments is
known as
Answer
Business risk.
Liquidity risk.
Exchange rate risk.
Financial risk.
Market risk.
5 points
Question 2
Measures of risk for an investment include
Answer
Variance of returns and business risk
Coefficient of variation of returns and financial risk
Business risk and financial risk
Variance of returns and coefficient of variation of returns
Question 3
In the phrase "nominal risk free rate," nominal means
Answer
Computed.
Historical.
Market.
Average.
Risk adverse.
Question 4
All of the following are major sources of uncertainty EXCEPT
Answer
Business risk
Financial risk
Default risk
Country risk
Liquidity risk
Question 5
For an investor with a time horizon of 12 years and higher risk tolerance, an appropriate asset
allocation strategy would be
Answer
100% stocks
30% cash, 50% bonds, and 20% stocks
10% cash, 30% bonds, and 60% stocks
50% bonds and 50% stocks
FIN 550 MIDTERM EXAM
Question 1
The uncertainty of investment returns associated with how a firm finances its investments is
known as
Answer
Business risk.
Liquidity risk.
Exchange rate risk.
Financial risk.
Market risk.
5 points
Question 2
Measures of risk for an investment include
Answer
Variance of returns and business risk
Coefficient of variation of returns and financial risk
Business risk and financial risk
Variance of returns and coefficient of variation of returns
Question 3
In the phrase "nominal risk free rate," nominal means
Answer
Computed.
Historical.
Market.
Average.
Risk adverse.
Question 4
All of the following are major sources of uncertainty EXCEPT
Answer
Business risk
Financial risk
Default risk
Country risk
Liquidity risk
Question 5
For an investor with a time horizon of 12 years and higher risk tolerance, an appropriate asset
allocation strategy would be
Answer
100% stocks
30% cash, 50% bonds, and 20% stocks
10% cash, 30% bonds, and 60% stocks
50% bonds and 50% stocks
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Document Details
University
Strayer University
Subject
Finance