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Week 3 Self Quiz

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Week 3 Self Quiz |

Grading Summary These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 8/5/2012 | Time Spent: | 1 h , 05 secs | Points Received: | 18 / 30 (60%) | | Question Type: | # Of Questions: | # Correct: | Multiple Choice | 5 | 3 | | |

Grade Details - All Questions |

1. | Question : | Which of the following bonds would have the greatest percentage increase in value if all interest rates fell by 1%? | | | Student Answer: | | 10-year, zero coupon bond | | | | 20-year, 10% coupon bond | | | | 20-year, 5% coupon bond | | | | 1-year, 10% coupon bond | | | | 20-year, zero coupon bond | | | | Points Received: | 6 of 6 | | Comments: | | | | 2. | Question : | Which of the following statements is most correct? | | | Student Answer: | | Characteristic line is another name for the security market line. | | | | The characteristic line is the regression line that results from plotting the returns on a particular stock versus the returns on a stock from a different industry. | | | | The slope of the characteristic line is the stock's standard deviation. | | | | The distance of the plot points from the characteristic line is a measure of the stock's market risk. | | | | The distance of the plot points from the characteristic line is a measure of the stock's diversifiable risk. | | | | Points Received: | 0 of 6 | | Comments: | | | | 3. | Question : | Which of the following statements is most correct? | | | Student Answer: | | A. Tests have shown that the betas of individual stocks are unstable over time, but that the betas of large portfolios are reasonably stable over time. | |

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