Author: Anonymous

Julius buys 100 shares of Acme stock at $100 per share on January 1, Year 1. At the end of the first year (December 31, Year 1), he buys 100 more shares at $120 per share. At the end of the second year (December 31, Year 2), he buys another 100 shares for $135 per share. The stock pays a dividend of $2.00 per share on December 29th of each year. Acme is trading at $169.80 as of December 31, Year 3. What is the time weighted return for Acme since January 1, Year 1 to today?

The North Equity Fund has a beta of 1.67 and a standard deviation of 22.6%. It has returned 13.8% during the past year when the return on one-year treasury bills has been 3.6%. The Sharpe Ratio of the North Equity Fund is closest to:

A mortgage-backed security is most likely to be characterized as having:

 The expected market return is 12% and the risk-free rate of return is 3%. Using the CAPM, what is theexpected return for a portfolio that has a standard deviation of 18% and a beta of 1.3?

Monique invested in a mutual fund 5 years ago. Her nominal returns were exactly 10% every year over that five-year period, while inflation averaged 2%.  Which of the following statements regarding average returns and standard deviation is most accurate?

Firms are least likely to use the primary equity market to raise capital for:

An investor buys $100,000 in par value of TIPS with a coupon rate of 8%. Inflation during the first sixmonths is 2.4%. The first semi-annual coupon payment is closest to:

The measure of “risk per unit of expected return” is most likely referred to as the:  

Fred bought 100 shares of Apple at $115 per share. One year later he sold the stock for $152 per share. During the year, Apple declared and paid dividends of $2 per share. Fred’s holding period return is closest to: 

Michela, who is in the 30% tax bracket, bought 1,000 shares of Ruby at $40 per share. Six months later, she sold the stock for $58 per share. Michela’s after-tax holding period return is closest to: