FINA 3000 UGA POPE TEST 2
CONCEPTUAL EXAM 2025
20-30 - ANSWERAbout how many stocks gives a good degree of diversification
Non-Diversifiable Risk (Systematic) - ANSWERIn 2008 when the housing bubble burst
and caused a recession to hit, this affected virtually all stocks.... This is an example of?
More - ANSWERIf a stock has a beta>1 then the stock moves __________ than the
market does
Less - ANSWERIf a stock has a beta<1 then the stock moves _________ than the
market does
- ANSWERIf a stock has a beta=1 then the stock moves __________ with the market
0 - ANSWERTreasury bills have a beta of ______
Market Risk Premium - ANSWERIn the security market line what represents the slope?
Risk Free Rate - ANSWERIn the security market line what represents the y-intercept?
Short Position - ANSWERWhen you take a __________ you believe that the price of an
asset will decrease
Declined - ANSWERHistorically the US stock market has always __________ when a
president is facing impeachment
The same - ANSWERThe Market portfolio risk premium is __________ for all firms no
matter how big or small
The scale of the project - ANSWERThe NPV rule takes into account what?
NPV - ANSWERPresent value of all cash flows - your initial investment
CONCEPTUAL EXAM 2025
20-30 - ANSWERAbout how many stocks gives a good degree of diversification
Non-Diversifiable Risk (Systematic) - ANSWERIn 2008 when the housing bubble burst
and caused a recession to hit, this affected virtually all stocks.... This is an example of?
More - ANSWERIf a stock has a beta>1 then the stock moves __________ than the
market does
Less - ANSWERIf a stock has a beta<1 then the stock moves _________ than the
market does
- ANSWERIf a stock has a beta=1 then the stock moves __________ with the market
0 - ANSWERTreasury bills have a beta of ______
Market Risk Premium - ANSWERIn the security market line what represents the slope?
Risk Free Rate - ANSWERIn the security market line what represents the y-intercept?
Short Position - ANSWERWhen you take a __________ you believe that the price of an
asset will decrease
Declined - ANSWERHistorically the US stock market has always __________ when a
president is facing impeachment
The same - ANSWERThe Market portfolio risk premium is __________ for all firms no
matter how big or small
The scale of the project - ANSWERThe NPV rule takes into account what?
NPV - ANSWERPresent value of all cash flows - your initial investment
