Finance Exam 3 Homework Problems
Small company stocks, as the term is used in the textbook, are best defined
as the... - correct answer ✔smallest 20 percent of the companies listed on
the NYSE.
What is the historic real return on long-term government bonds? - correct
answer ✔2.91%
What is the historic real return on long-term corporate bonds? - correct
answer ✔3.20%
You purchased GARP stock one year ago at a price of $65.64 per share.
Today, you sold your stock and earned a total return of 18.51 percent. The
stock paid dividends of $2.64 per share over the year. What was the capital
gains yield on your investment? - correct answer ✔14.49%
The average compound return earned per year over a multiyear period is
called the _______ average return. - correct answer ✔geometric
Standard deviation is a measure of which of the following? - correct answer
✔volatility
Assume that last year T-bills returned 2.8 percent while your investment in
large-company stocks earned an average of 7.6 percent. Which one of the
following terms refers to the difference these two rates of return? - correct
answer ✔risk premium
The U.S. Securities and Exchange Commission periodically charges
individuals with insider trading and claims those individuals have made unfair
Small company stocks, as the term is used in the textbook, are best defined
as the... - correct answer ✔smallest 20 percent of the companies listed on
the NYSE.
What is the historic real return on long-term government bonds? - correct
answer ✔2.91%
What is the historic real return on long-term corporate bonds? - correct
answer ✔3.20%
You purchased GARP stock one year ago at a price of $65.64 per share.
Today, you sold your stock and earned a total return of 18.51 percent. The
stock paid dividends of $2.64 per share over the year. What was the capital
gains yield on your investment? - correct answer ✔14.49%
The average compound return earned per year over a multiyear period is
called the _______ average return. - correct answer ✔geometric
Standard deviation is a measure of which of the following? - correct answer
✔volatility
Assume that last year T-bills returned 2.8 percent while your investment in
large-company stocks earned an average of 7.6 percent. Which one of the
following terms refers to the difference these two rates of return? - correct
answer ✔risk premium
The U.S. Securities and Exchange Commission periodically charges
individuals with insider trading and claims those individuals have made unfair
