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FIN 550: Midterm Exam on Investment and Portfolio Management

A midterm exam on investment strategies and portfolio management, with a focus on building diversified portfolios and assessing risk.

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FIN 550: Midterm Exam on Investment and Portfolio ManagementFIN 550 MIDTERMEXAMQuestion 1The uncertainty of investment returns associated with how a firm finances its investments isknown asAnswerBusiness risk.Liquidity risk.Exchange rate risk.Financial risk.Market risk.5 pointsQuestion 2Measures of risk for an investment includeAnswerVariance of returns and business riskCoefficient of variation of returns and financial riskBusiness risk and financial riskVariance of returns and coefficient of variation of returnsQuestion 3In the phrase "nominal risk free rate," nominal meansAnswerComputed.Historical.Market.Average.Risk adverse.Question 4All of the following are major sources of uncertainty EXCEPTAnswerBusiness riskFinancial riskDefault riskCountry riskLiquidity riskQuestion 5For an investor with a time horizon of 12 years and higher risk tolerance, an appropriate assetallocation strategy would beAnswer100% stocks30% cash, 50% bonds, and 20% stocks10% cash, 30% bonds, and 60% stocks50% bonds and 50% stocks

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Document Details

University
Strayer University
Course
FIN 550
Subject
Finance

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