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    Multiple Choice

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    1. A security has an expected return of 10% and a standard deviation of .03. If the security is normally distributed, about 68% of the time the security return will be:
    (A) Between 4% and 10%.
    (B) Between 7% and 10%.
    (C) Between 7% and 13%.
    (D) Between 10% and 13%

    2. Kids Toy Co. has had total returns over the past five years of 0%, 7%, -2%, 10%, and 12%. What is the mean and variability percent return of this stock?
    (A) 6.75%; 6.15%
    (B) 5.40%; 6.15%
    (C) 6.75%; 6.33%
    (D) 5.40%; 5.50%

    3. From 1926 to 1994, total annual returns on common stocks averaged 12.2%, small company stocks averaged 17.4%, long-term government bonds averaged 5.2%, and Treasury Bills averaged 3.7%. What was the average risk premium earned by long-term Government Bonds, and small company stocks respectively?
    (A) 8.5%; 1.5%
    (B) 0; 12.2%
    (C) 1.5%; 13.7%
    (D) 1.5%; 7.0%

    4. A sample of four returns observations for the Malta Stock Fund is as follows:
    0.0725
    0.056
    0.125
    0.010
    What are the mean and variance of these returns?
    (A) 6.50%, 16.9
    (B) 6.60%, 22.5
    (C) 26.35%, 67.6
    (D) 8.80%, 16.9

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    https://brainmass.com/business/accounting/multiple-choice-236936

    Solution Summary

    The solution explains some multiple choice questions relating to returns

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