CRPC -Module 2 Questions with verified answers
An investor has a 6%, $10,000 par value bond that matures in 15 years. The yield
to maturity on similar bonds currently is 5.5%.
What is the price of this bond?
a. $1,050.62
b. $5,779.16
c. $9,509.99
d. $10, 506.23 Ans✓✓✓ d. $10, 506.23
Assuming the market is currently returning 12% and the beta of your stock is .8.
What percentage return can you expect on your stock?
a. 2.4%
b. 8.0%
c. 9.6%
d. 14.4% Ans✓✓✓ c. 9.6%
Beta is a measure of a stock's
a. range of returns
b. total risk
, c. variability
d. volatility Ans✓✓✓ d. volatility
Fund JKL has a mean return of 8% and a standard deviation of 12, and its returns
are evenly distributed.
This would mean that 68% of the time its returns would fall between
a. -4% and +20%
b. +4% and +20%
c. -8% and +8%
d. -16% and +32% Ans✓✓✓ a. -4% and +20%
Hector has been investing for years, and has approximately three quarters of his
portfolio invested in stock index and bond index funds, which he rebalances
periodically. He has the remainder of his portfolio invested in oil and health care
stocks, which he believes provide above-average price appreciation potential over
the next few years.
His style of asset allocation would be best described as
a. strategic
b. tactical
c. dynamic
d. core/satellite Ans✓✓✓ d. core/satellite
An investor has a 6%, $10,000 par value bond that matures in 15 years. The yield
to maturity on similar bonds currently is 5.5%.
What is the price of this bond?
a. $1,050.62
b. $5,779.16
c. $9,509.99
d. $10, 506.23 Ans✓✓✓ d. $10, 506.23
Assuming the market is currently returning 12% and the beta of your stock is .8.
What percentage return can you expect on your stock?
a. 2.4%
b. 8.0%
c. 9.6%
d. 14.4% Ans✓✓✓ c. 9.6%
Beta is a measure of a stock's
a. range of returns
b. total risk
, c. variability
d. volatility Ans✓✓✓ d. volatility
Fund JKL has a mean return of 8% and a standard deviation of 12, and its returns
are evenly distributed.
This would mean that 68% of the time its returns would fall between
a. -4% and +20%
b. +4% and +20%
c. -8% and +8%
d. -16% and +32% Ans✓✓✓ a. -4% and +20%
Hector has been investing for years, and has approximately three quarters of his
portfolio invested in stock index and bond index funds, which he rebalances
periodically. He has the remainder of his portfolio invested in oil and health care
stocks, which he believes provide above-average price appreciation potential over
the next few years.
His style of asset allocation would be best described as
a. strategic
b. tactical
c. dynamic
d. core/satellite Ans✓✓✓ d. core/satellite
