INV2601 ASSIGNMENT 1
FOR 1ST SEMESTER 2025
FEND TUTORIALS
, Started on Thursday, 13 February 2025, 11:32 AM
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Incorrect
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Question text
Share A:
Possible outcomes Probability (%) Return (%)
Pessimistic 20 8
Most likely 35 14
Optimistic 45 25
Share B:
The expected return of share B is 15% and its standard deviation is 8%.
Calculate the standard deviation of share A.
a.
7.90%
b.
47.59%
c.
6.90%
d.
47.59%
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Your answer is correct.
,The correct answer is:
6.90%
Question 2
Correct
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Question text
Which of the following statements about preference shares is most accurate?
a.
A preference share may be callable, in which case it is said to be redeemable.
b.
A preference share may be callable, in which case it is said to be not redeemable.
c.
Dividends on preference shares are usually not cumulative.
d.
Preference shares are not regarded as fixed income securities because most preference share dividends are fixed
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Your answer is correct.
The correct answer is:
A preference share may be callable, in which case it is said to be redeemable.
Question 3
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Question text
, Which of the following statements about weighted schemes is incorrect?
a.
An equally weighted series is an index of shares where each share carries an equal weight regardless of its price
b.
A price-weighted series is an arithmetic average of current prices, which means that index movements are influ
differential prices of the constituents.
c.
The index divisor is attached to all corporate actions in an attempt to adjust these actions to keep the index cons
d.
A value-weighted series is calculated by determining the initial total market capitalisation of all shares no
series.
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Your answer is correct.
The correct answer is:
A value-weighted series is calculated by determining the initial total market capitalisation of all shares not used
Question 4
Correct
Mark 1.00 out of 1.00
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Question text
Holding period return (HPR) can be measured as...
a.
Beginning value of investment divided by ending value of investment.
b.
FOR 1ST SEMESTER 2025
FEND TUTORIALS
, Started on Thursday, 13 February 2025, 11:32 AM
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Incorrect
Mark 0.00 out of 1.00
Flag question
Question text
Share A:
Possible outcomes Probability (%) Return (%)
Pessimistic 20 8
Most likely 35 14
Optimistic 45 25
Share B:
The expected return of share B is 15% and its standard deviation is 8%.
Calculate the standard deviation of share A.
a.
7.90%
b.
47.59%
c.
6.90%
d.
47.59%
Feedback
Your answer is correct.
,The correct answer is:
6.90%
Question 2
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Which of the following statements about preference shares is most accurate?
a.
A preference share may be callable, in which case it is said to be redeemable.
b.
A preference share may be callable, in which case it is said to be not redeemable.
c.
Dividends on preference shares are usually not cumulative.
d.
Preference shares are not regarded as fixed income securities because most preference share dividends are fixed
Feedback
Your answer is correct.
The correct answer is:
A preference share may be callable, in which case it is said to be redeemable.
Question 3
Correct
Mark 1.00 out of 1.00
Flag question
Question text
, Which of the following statements about weighted schemes is incorrect?
a.
An equally weighted series is an index of shares where each share carries an equal weight regardless of its price
b.
A price-weighted series is an arithmetic average of current prices, which means that index movements are influ
differential prices of the constituents.
c.
The index divisor is attached to all corporate actions in an attempt to adjust these actions to keep the index cons
d.
A value-weighted series is calculated by determining the initial total market capitalisation of all shares no
series.
Feedback
Your answer is correct.
The correct answer is:
A value-weighted series is calculated by determining the initial total market capitalisation of all shares not used
Question 4
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Holding period return (HPR) can be measured as...
a.
Beginning value of investment divided by ending value of investment.
b.
