uky fin 300 final exam with questions and correct
answers for revision
The real rate of return on a stock is approximately equal to the nominal rate of return:
Multiplied by (1 + inflation rate).
Plus the inflation rate.
Minus the inflation rate.
Divided by (1 + inflation rate).
Divided by (1 - inflation rate). - CORRECT ANSWERS-Minus the inflation rate
Inside information has the least value when financial markets are
Weak form efficient.
Semi weak form efficient.
Semi strong form efficient.
Strong form efficient. - CORRECT ANSWERS-Strong form efficient
What is the amount of the risk premium on a U.S. Treasury bill if the risk-free rate is 2.8 percent and the
market rate of return is 8.35 percent? - CORRECT ANSWERS-0 percent
There is no excess return, or risk premium, for a risk-free security such as the T-bill
answers for revision
The real rate of return on a stock is approximately equal to the nominal rate of return:
Multiplied by (1 + inflation rate).
Plus the inflation rate.
Minus the inflation rate.
Divided by (1 + inflation rate).
Divided by (1 - inflation rate). - CORRECT ANSWERS-Minus the inflation rate
Inside information has the least value when financial markets are
Weak form efficient.
Semi weak form efficient.
Semi strong form efficient.
Strong form efficient. - CORRECT ANSWERS-Strong form efficient
What is the amount of the risk premium on a U.S. Treasury bill if the risk-free rate is 2.8 percent and the
market rate of return is 8.35 percent? - CORRECT ANSWERS-0 percent
There is no excess return, or risk premium, for a risk-free security such as the T-bill
