5/24/2018 Final Quiz Spring IBA 2010

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IBA, University of Dhaka

EMBA

F- 608; Portfolio Manageent an! Investent Analysis

Final "#i$ % &'ring (0)0

Id. #. .*+UP % A

Marks )0 .ie )0 in#tes

/irle the ost a''ro'riate ans1er for the follo1ing #lti'le-hoie 2#estions

(1) Which of the following is correct concerning efficient portfolios?

a) They have zero risk. ) They have the highest e!pected ret"rn.

3 .hey have the highest risk4ret#rn tra!eoff5 d) They have the lowest risk.

() $eward%to%variaility ratio of a high%risk stock is &&&&&&& that of a low%risk stock.

a3 the sae as ) higher than

c) lower than d) none of the aove

(') ccording to the systeatic risk principle* which one of the following risks is rewarded?

a) +nsysteatic risk ) Total risk

3 &ysteati risk d) Ind"stry risk

(,) If yo" elieve the econoy is ao"t to recover fro a recession yo" ight change yo"r asset

allocation y selling &&&&&&& and "ying &&&&&&&.

a) growth stocks* long%ter onds ) defensive stocks* long%ter onds

3 !efensive stoks, short-ter on!s d) long%ter onds* growth stocks

(-) The average prie rate charged y anks is &&&&&&&&&&.

a) a leading econoic indicator ) a coincidental econoic indicator

3 a lagging eonoi in!iator d) none of the aove

() stock/s dividend is e!pected to grow at a constant rate of -0 a year. Which of the following

stateents is(are) correct?

a) The e!pected ret"rn on the stock is -0 a year.) The stock/s dividend yield is -0.

3 .he stok7s 'rie one year fro no1 is e'ete! to e 9: higher

d) tateents 2 and 3 are correct.

(4) The Te!took 5rod"ction 3opany has een hit hard d"e to increased copetition. The

copany/s analysts predict that earnings (and therefore dividends) will decline at a rate of -0

ann"ally forever. ss"e that the rate of ret"rn on the stock is 110 and the year%end dividend

is Tk .66 per share. What will e the c"rrent price of the copany/s stock?

a) Tk. 1'.'' ) Tk. 1,.-6 c) 16.7' !3 .k5 )(590

(7) ccording to the 8ensen approach* a portfolio will significantly o"tperfor the arket when

its alpha is &&&&&&&&&&.a3 'ositive ) negative c) zero d) 9one of the aove.

(:) The harpe eas"re and the Treynor eas"re will provide siilar rankings in portfolio

perforance if the portfolios &&&&&&&&&.

a) the sae e!pected ret"rns 3 are 1ell !iversifie!

c) the sae standard deviations d) the sae etas

(16) The ;approach foc"ses &&&&&&&&&&& as a eas"re of risk of the sec"rity.

a) the arket risk ) the "nsysteatic risk

3 the total risk d) the nondiversifiale risk

5/24/2018 Final Quiz Spring IBA 2010

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