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Question
Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: Asset A E(rA) = 10% σA = 20%Asset B E(rB) = 15% σB = 27%
An investor with a risk aversion of A = 3 would find that _________________ on a risk-return basis.
A. only asset A is acceptable
B. only asset B is acceptable
C. neither asset A nor asset B is acceptable
D. both asset A and asset B are acceptable
Answer
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Related questions
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Q:
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II. WEBS trade continuously on the AMEX.
III. WEBS are passively managed.
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B. II and III only
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Q:
The major participants who directly purchase securities in the capital markets of other countries are predominantly ____________.
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In the PRS financial risk ratings, the United States rates poorly because of the U.S. ________.
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II. Large trade deficit
III. Large amount of total debt
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Q:
The yen-per-dollar spot rate is 104. The yen-per-dollar forward rate is 107. If the U.S. risk-free rate is 2.4%, what is the likely yen risk-free rate?
A. 1.24%
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Q:
The risk-free rate in the United States is 4%, and the risk-free rate in Japan is 1.2%. If the spot rate of yen to dollars is 105, what is the likely yen-per-dollar forward rate?
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Q:
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Q:
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C. active management
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A. Equity and Foreign Exchange
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Q:
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Q:
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Q:
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A. 10
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Q:
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Q:
Which one of the following will increase the value of a put option?
A.
a decrease in the exercise price
B.
a decrease in time to expiration of the put
C.
an increase in the volatility of the underlying stock
D.
Q:
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Q:
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Q:
At maturity of a futures contract, the spot price and futures price must be approximately the same because of __________.
A. marking to market
B. the convergence property
C. the open interest
D. the triple witching hour
Q:
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Q:
Margin must be posted by ________.
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B. sellers of futures contracts only
C. both buyers and sellers of futures contracts
D. speculators only