Financial Analysis and Portfolio Management: A Comprehensive Assessment
Evaluation of financial analysis and portfolio management strategies.
Benjamin Fisher
Contributor
4.2
33
30 days ago
Preview (3 of 7)
Sign in to access the full document!
Financial Analysis and Portfolio Management: A Comprehensive
Assessment
QUESTION 1
An investor puts $10,000 in a risk-free asset and $20,000 in the market
portfolio. Compute the beta of his portfolio.
a) 0.67
b) 0.33
c) 2
d) 1
e) 0.50
1 points
QUESTION 2
ABC Inc. issued sixteen-year, 6 percent semi-annual coupon bonds at par.
Today, the bonds are priced at $1012. What is the firm’s after-tax cost of debt if
the tax rate is 30%? Note: Enter your answer rounded off to two decimal points.
Do not enter % in the answer box. For example, if your answer is 0.12345 then
enter as 12.35 in the answer box.
Ans. 4.12
1 points
QUESTION 3
If the coupon rate is less than the yield to maturity, the bond will:
sell at par
sell at a
premium
sell at a
discount
1 points
QUESTION 4
The beta of the risk-free asset is:
a) 0
b) 1
c) 1.5
d) 2
1 points
QUESTION 5
You take a loan of $17,581 to buy a car. As per the terms of the loan, you
need to make monthly payments for 4 years at a 5.2% rate of interest. What is the
Assessment
QUESTION 1
An investor puts $10,000 in a risk-free asset and $20,000 in the market
portfolio. Compute the beta of his portfolio.
a) 0.67
b) 0.33
c) 2
d) 1
e) 0.50
1 points
QUESTION 2
ABC Inc. issued sixteen-year, 6 percent semi-annual coupon bonds at par.
Today, the bonds are priced at $1012. What is the firm’s after-tax cost of debt if
the tax rate is 30%? Note: Enter your answer rounded off to two decimal points.
Do not enter % in the answer box. For example, if your answer is 0.12345 then
enter as 12.35 in the answer box.
Ans. 4.12
1 points
QUESTION 3
If the coupon rate is less than the yield to maturity, the bond will:
sell at par
sell at a
premium
sell at a
discount
1 points
QUESTION 4
The beta of the risk-free asset is:
a) 0
b) 1
c) 1.5
d) 2
1 points
QUESTION 5
You take a loan of $17,581 to buy a car. As per the terms of the loan, you
need to make monthly payments for 4 years at a 5.2% rate of interest. What is the
Preview Mode
Sign in to access the full document!
100%
Study Now!
XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat
Document Details
Subject
Finance