[07] Lesson 8 Exam - Results
Attempt 1 of 2
Written Jul 28, 2025 12:11 PM - Jul 28, 2025 12:23 PM
Attempt Score - 100 %
Overall Grade (Highest Attempt) - 100 %
Question 1 points
Which of the following statements is TRUE about variance?
a) Variance describes how spread out a set of numbers or values are
around its mean or average.
b) Variance is essentially the variability from the average.
c) The larger the variance, the greater the dispersion.
d) All of the above statements are true.
Question 2 points
Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an
expected return of 13.1%. Asset C has a beta of .50 and an expected return of
7.5%. The risk-free rate is 4% and the expected return on the market portfolio
, is 11%. If you wish to hold a portfolio consisting of assets B and C, and have a
portfolio beta equal to 1.0, what proportion of the portfolio must be in asset
C?
a) 0.375
b) 0.50
c) 0.625
d) 0.75
Question 3 points
Stocks A, B, C, and D have returns of 10%, 20%, 30%, and 40%, respectively.
What is their variance?
a) 66.67%
b) 166.67%
c) 4.08%
d) 2.15%
Question 4 points
The security market line has:
Attempt 1 of 2
Written Jul 28, 2025 12:11 PM - Jul 28, 2025 12:23 PM
Attempt Score - 100 %
Overall Grade (Highest Attempt) - 100 %
Question 1 points
Which of the following statements is TRUE about variance?
a) Variance describes how spread out a set of numbers or values are
around its mean or average.
b) Variance is essentially the variability from the average.
c) The larger the variance, the greater the dispersion.
d) All of the above statements are true.
Question 2 points
Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an
expected return of 13.1%. Asset C has a beta of .50 and an expected return of
7.5%. The risk-free rate is 4% and the expected return on the market portfolio
, is 11%. If you wish to hold a portfolio consisting of assets B and C, and have a
portfolio beta equal to 1.0, what proportion of the portfolio must be in asset
C?
a) 0.375
b) 0.50
c) 0.625
d) 0.75
Question 3 points
Stocks A, B, C, and D have returns of 10%, 20%, 30%, and 40%, respectively.
What is their variance?
a) 66.67%
b) 166.67%
c) 4.08%
d) 2.15%
Question 4 points
The security market line has:
