- A stock had annual returns of 11.3 percent, 9.8 percent, −7.3 percent, and 14.6 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year? −12.5 to 26.7 percent
- A stock had annual returns of 5.3 percent, −2.7 percent, 16.2 percent, and 13.6 percent over the past four years. Which one of the following best describes the probability that this stock will produce a return of 20 percent or more in a single year? Less than 16 percent but more than 2.5 percent
- The excess return is computed as the: return on a risky security minus the risk-free rate.
- The historical record for the period 1926-2016 supports which one of the following statements? Small-company stocks have lost as much as 50 percent and gained as much as 100 percent in a single year.
- West Wind Tours stock is currently selling for $52.30 a share. The stock has a dividend yield of 2.48 percent. How much dividend income will you receive per year if you purchase 600 shares of this stock? $778.22
- Which of the following statements are true based on the historical record for 1926-2016? Bonds are generally a safer, or less risky, investment than are stocks.
- Which of the following yields on a stock can be negative? Capital gains yield and total return
- Which one of the following had the least volatile annual returns over the period of 1926-2016? US Treasury Bills
- Which one of the following statements is a correct reflection of the U.S. financial markets for the period 1926-2016? U.S. Treasury bills had an annual return in excess of 10 percent in three or more years.
- Which one of the following time periods is associated with low rates of inflation? 2014-2015
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