Busn 379 Hw Es Essay Example
Answers to questions with corrections
Question Type: # Of Questions: # Correct:
Multiple Choice 5 2
Many Multiple Choice 3 0
Short 1 N/A
Grade Details - All Questions 1. Question :
(TCO 8) The historical returns on large-company stocks, as reported by Ibbotson and Sinquefield, are based on:
Student Answer: INCORRECT the largest 20 percent of the stocks traded on the NYSE. the stocks of the largest 10 percent of the publicly traded firms in the U.S. all of the stocks listed on the NYSE. CORRECT the stocks of the 500 companies included in the S&P 500 index. Instructor Explanation: (Chapter 10, Page 306) Points Received: 0 of 3 Comments:
2. Question :
(TCO 8) If the financial markets are efficient, then:
Student Answer: stock prices should never change. CORRECT stock prices should only respond to unexpected news and events. INCORRECT stock prices should increase or decrease slowly as new events are analyzed and the information is absorbed by the markets. stock prices will only change when an event actually occurs, not at the time the event is anticipated. Instructor Explanation: (Chapter 10, Page 327-330) Points Received: 0 of 3 Comments:
3. Question :
(TCO 8) Which of the following statements is false regarding systematic risk? Select all that apply:
Student Answer: INCORRECT is always diversifiable INCORRECT is the total risk associated with surprise events INCORRECT affects only a specific project or firm CORRECT is measured by standard deviation Instructor Explanation: (Chapter 11, Pages 347, 350-355) Points Received: 1 of 4 Comments:
4. Question :
(TCO 8) Assume a project that has the following returns for years 1 to 5: 15%, 4%, -13%, 34%, and 17%. What is the approximate expected return of this investment?
Student Answer: CORRECT 11% INCORRECT 17% 16.60% 10% Instructor Explanation: (Chapter 11, Pages 340-341,
Question Type: # Of Questions: # Correct:
Multiple Choice 5 2
Many Multiple Choice 3 0
Short 1 N/A
Grade Details - All Questions 1. Question :
(TCO 8) The historical returns on large-company stocks, as reported by Ibbotson and Sinquefield, are based on:
Student Answer: INCORRECT the largest 20 percent of the stocks traded on the NYSE. the stocks of the largest 10 percent of the publicly traded firms in the U.S. all of the stocks listed on the NYSE. CORRECT the stocks of the 500 companies included in the S&P 500 index. Instructor Explanation: (Chapter 10, Page 306) Points Received: 0 of 3 Comments:
2. Question :
(TCO 8) If the financial markets are efficient, then:
Student Answer: stock prices should never change. CORRECT stock prices should only respond to unexpected news and events. INCORRECT stock prices should increase or decrease slowly as new events are analyzed and the information is absorbed by the markets. stock prices will only change when an event actually occurs, not at the time the event is anticipated. Instructor Explanation: (Chapter 10, Page 327-330) Points Received: 0 of 3 Comments:
3. Question :
(TCO 8) Which of the following statements is false regarding systematic risk? Select all that apply:
Student Answer: INCORRECT is always diversifiable INCORRECT is the total risk associated with surprise events INCORRECT affects only a specific project or firm CORRECT is measured by standard deviation Instructor Explanation: (Chapter 11, Pages 347, 350-355) Points Received: 1 of 4 Comments:
4. Question :
(TCO 8) Assume a project that has the following returns for years 1 to 5: 15%, 4%, -13%, 34%, and 17%. What is the approximate expected return of this investment?
Student Answer: CORRECT 11% INCORRECT 17% 16.60% 10% Instructor Explanation: (Chapter 11, Pages 340-341,