Financial literacy

You own a portfolio that is 32 percent invested in Stock X, 22 percent in Stock

You own a portfolio that is 32 percent invested in Stock X, 22 percent in Stock Y, and 46 percent in Stock Z. The expected returns on these three stocks are 8 percent, 14 percent,…

You own a portfolio that is 32 percent invested in Stock X, 47 percent in Stock

You own a portfolio that is 32 percent invested in Stock X, 47 percent in Stock Y, and 21 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent…

You own a portfolio that is 34 percent invested in Stock X, 49 percent in Stock

You own a portfolio that is 34 percent invested in Stock X, 49 percent in Stock Y, and 17 percent in Stock Z. The expected returns on these three stocks are 8 percent, 11 percent,…

You own a portfolio that is 34 percent invested in Stock X, 49 percent in Stock

You own a portfolio that is 34 percent invested in Stock X, 49 percent in Stock Y, and 17 percent in Stock Z. The expected returns on these three stocks are 8 percent, 11 percent,…

You own a portfolio that is 35 percent invested in Stock X, 20 percent in Stock

You own a portfolio that is 35 percent invested in Stock X, 20 percent in Stock Y, and 45 percent in Stock Z. The expected returns on these three stocks are 8 percent, 19 percent,…

You own a portfolio that is 36 percent invested in Stock X, 20 percent in Stock

You own a portfolio that is 36 percent invested in Stock X, 20 percent in Stock Y, and 44 percent in Stock Z. The expected returns on these three stocks are 9 percent, 17 percent,…

You own a portfolio that is 36 percent invested in Stock X, 26 percent in Stock

You own a portfolio that is 36 percent invested in Stock X, 26 percent in Stock Y, and 38 percent in Stock Z. The expected returns on these three stocks are 10 percent, 16 percent…

You own a portfolio that is 38 percent invested in Stock X, 24 percent in Stock

You own a portfolio that is 38 percent invested in Stock X, 24 percent in Stock Y, and 38 percent in Stock Z. The expected returns on these three stocks are 12 percent, 18 percent…

You own a portfolio that is 38 percent invested in Stock X, 24 percent in Stock

You own a portfolio that is 38 percent invested in Stock X, 24 percent in Stock Y, and 38 percent in Stock Z. The expected returns on these three stocks are 12 percent, 18 percent…

You own a portfolio that is invested 50 percent in stock A, 15 percent in stock

You own a portfolio that is invested 50 percent in stock A, 15 percent in stock B, and the remainder in stock C. The expected returns on these stocks are 14.45 percent, 15.6 perce…

You own a portfolio which is 25 percent invested in U.S. Treasury bills, 30 perc

You own a portfolio which is 25 percent invested in U.S. Treasury bills, 30 percent invested in Stock A with a beta of 0.80, 25 percent invested in stock B with a beta of 1.40, an…

You own a project which requires an initial investment of £1M. One year from now

You own a project which requires an initial investment of £1M. One year from now this project will pay either £0.8M with probability 40% or £1.5M with probability 60%. After this,…

You own a security that provides an annual dividend of $155 forever. The securit

You own a security that provides an annual dividend of $155 forever. The security's annual return is 9%. What is the present value of this security? Round your answer to the neare…

You own a small investment property and are considering selling it. Your propert

You own a small investment property and are considering selling it. Your property has NOI of $120,000. You have identified 4 comparable properties that all sold recently. All four…

You own a small manufacturing plant that currently generates revenues of $2 mill

You own a small manufacturing plant that currently generates revenues of $2 million per year. Next year, based upon a decision on a long-term government contract, your revenues wi…

You own a small networking startup. You have just received an offer to buy your

You own a small networking startup. You have just received an offer to buy your firm from a large, publicly traded firm, JCH Systems. Under the terms of the offer, you will receiv…

You own a small networking startup. You have just received an offer to buy your

You own a small networking startup. You have just received an offer to buy your firm from a large, publicly traded firm, JCH Systems. Under the terms of the offer, you will receiv…

You own a stock portfolio invested 12 percent in Stock Q, 16 percent in Stock R,

You own a stock portfolio invested 12 percent in Stock Q, 16 percent in Stock R, 30 percent in Stock S, and 42 percent in Stock T. The betas for these four stocks are 0.77, 1.76, …

You own a stock portfolio invested 15 percent in Stock Q, 15 percent in Stock R,

You own a stock portfolio invested 15 percent in Stock Q, 15 percent in Stock R, 20 percent in Stock S, and 50 percent in Stock T. The betas for these four stocks are 1.43, 0.87, …

You own a stock portfolio invested 15 percent in Stock Q, 30 percent in Stock R,

You own a stock portfolio invested 15 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 35 percent in Stock T. The betas for these four stocks are 1.5, .6, 1.6…

You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R,

You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R, 15 percent in Stock S, and 45 percent in Stock T. The betas for these four stocks are 1.52, 1.64, …

You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R,

You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R, 35 percent in Stock S, and 25 percent in Stock T. The betas for these four stocks are 1.2, 0.4, 1.…

You own a stock portfolio invested 20 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 20 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 30 percent in Stock T. The betas for these four stocks are 1.6, .5, 1.7…

You own a stock portfolio invested 20 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 20 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 30 percent in Stock T. The betas for these four stocks are 1.6, .5, 1.7…

You own a stock portfolio invested 20 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 20 percent in Stock Q, 25 percent in Stock R, 15 percent in Stock S, and 40 percent in Stock T. The betas for these four stocks are 1.31, 1.31, …

You own a stock portfolio invested 25 percent in Stock Q, 15 percent in Stock R,

You own a stock portfolio invested 25 percent in Stock Q, 15 percent in Stock R, 10 percent in Stock S, and 50 percent in Stock T. The betas for these four stocks are 0.81, 1.09, …

You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 20 percent in Stock S, and 30 percent in Stock T. The betas for these four stocks are 1.7, .6, 1.8…

You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 15 percent in Stock S, and 35 percent in Stock T. The betas for these four stocks are 0.98, 0.64, …

You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 20 percent in Stock S, and 30 percent in Stock T. The betas for these four stocks are 1.7, .6, 1.8…

You own a stock portfolio invested 25 percent in Stock Q, 30 percent in Stock R,

You own a stock portfolio invested 25 percent in Stock Q, 30 percent in Stock R, 30 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .75, 1.13, 1…

You own a stock portfolio invested 30 percent in Stock Q, 30 percent in Stock R,

You own a stock portfolio invested 30 percent in Stock Q, 30 percent in Stock R, 30 percent in Stock S, and 10 percent in Stock T. The betas for these four stocks are .82, 1.20, 1…

You own a stock portfolio invested 30 percent in Stock Q, 30 percent in Stock R,

You own a stock portfolio invested 30 percent in Stock Q, 30 percent in Stock R, 30 percent in Stock S, and 10 percent in Stock T. The betas for these four stocks are 0.82, 1.20, …

You own a stock portfolio invested 35 percent in Stock Q, 20 percent in Stock R,

You own a stock portfolio invested 35 percent in Stock Q, 20 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are 0.94, 1.11, …

You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 0.83, 1.21, …

You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 0.83, 1.21, …

You own a stock portfolio invested 35 percent in Stock Q, 30 percent in Stock R,

You own a stock portfolio invested 35 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .79, 1.17, 1…

You own a stock portfolio invested 40 percent in Stock Q, 25 percent in Stock R,

You own a stock portfolio invested 40 percent in Stock Q, 25 percent in Stock R, 20 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 0.93, 1.10, …

You own a stock portfolio which is valued at $10 million and has a beta of 1.5.

You own a stock portfolio which is valued at $10 million and has a beta of 1.5. You would like to create a full hedge on this portfolio using S&P 500 futures contracts. The co…

You own a two-bond portfolio. Each has a par value of $1,000. Bond A matures in

You own a two-bond portfolio. Each has a par value of $1,000. Bond A matures in five years, has a coupon rate of 8 percent, and has an annual yield to maturity of 9.20 percent. Bo…

You own a wholesale plumbing supply store. The store currently generates revenue

You own a wholesale plumbing supply store. The store currently generates revenues of $1.03 million per year. Next year, revenues will either decrease by 9.9%or increase by 4.6%, w…

You own a wholesale plumbing supply store. The store currently generates revenue

You own a wholesale plumbing supply store. The store currently generates revenues of $1.05 million per year. Next year revenues will either decrease by 10.5% increase by 5.5%, wit…

You own an apartment complex made up of 10 units each of which is rented out at

You own an apartment complex made up of 10 units each of which is rented out at a monthly rent of $1000. You purchased the facility 2 years ago for $1,000,000, and plan to hold th…

You own an oil pipeline that will generate a $2.4 million cash return over the c

You own an oil pipeline that will generate a $2.4 million cash return over the coming year. The pipeline’s operating costs are negligible, and it is expected to last for a very lo…

You own and operate a gay gentlemen’s club in Illinois. You have well over 35 fu

You own and operate a gay gentlemen’s club in Illinois. You have well over 35 full time employees. You only hire straight men under age 30 as erotic dancers to 1) avoid patronizin…

You own and operate a start-up company with two of your siblings. You are lookin

You own and operate a start-up company with two of your siblings. You are looking for venture capital to help grow your business. Which of the following is not something that you …

You own some equipment that you purchased 4 years ago at a cost of $216,000. The

You own some equipment that you purchased 4 years ago at a cost of $216,000. The equipment is 5 year property for MACRS. You are considering selling the equipment today for $75,50…

You own some equipment that you purchased 4 years ago at a cost of $225,000. The

You own some equipment that you purchased 4 years ago at a cost of $225,000. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $87,00…

You own some equipment that you purchased four years ago at a cost of $287,000.

You own some equipment that you purchased four years ago at a cost of $287,000. The equipment is five-year property for MACRS. The MACRS rates are .2, .32, .192, .1152, .1152, .05…

You own some equipment that you purchased four years ago at a cost of $287,000.

You own some equipment that you purchased four years ago at a cost of $287,000. The equipment is five-year property for MACRS. The MACRS rates are .2, .32, .192, .1152, .1152, .05…

You own some equipment which you purchased three years ago at a cost of $135,000

You own some equipment which you purchased three years ago at a cost of $135,000. The equipment is depreciated straight-line to zero over the course of 5 years. You are considerin…