CH 7 Practice Problems

Question 1

Spacefood Productions

A) $24.00
B) $23.97
C) $30.22
D) $34.29

Answer 1

D) $34.29

Question 2

Galactic Snacks

A) $75.00
B) $75 Million
C) $7.5 Billion
D) $30 Billion

Answer 2

C) $7.5 Billion

Question 3

Interstellar Treats

A) $200.00
B) $75 Million
C) $7.5 Billion
D) $30 Billion

Answer 3

D) $30 Billion

Question 4

EJH Enterprise Market Equity

A) $48.07
B) $55.1
C) $38
D) $34.81

Answer 4

A) $48.07

Question 5

EJH Enterprise Stock Price

A) $48.07
B) $55.1
C) $38
D) $34.81

Answer 5

C) $38

Question 6

XYZ Corporation Market Equity

A) $48.07
B) $55.1
C) $38
D) $43.48

Answer 6

D) $43.48

Question 7

XYZ Corporation Stock Price

A) $48.07
B) $42
C) $38
D) $34.81

Answer 7

B) $42

Question 8

High Yield Fund

A) 0.459%, 1.09%
B) 0.479%, 1.02%
C) 0.479%, 1.08%
D) 1.029%, 1.12%

Answer 8

B) 0.479%, 1.02%

Question 9

Global Equity Fund

A) 0.459%, 1.09%
B) 0.479%, 1.02%
C) 0.83%, 4.17%
D) 1.029%, 5.12%

Answer 9

C) 0.83%, 4.17%

Question 10

Emerging Markets

A) 0.4%, -6.67%
B) 0.8%, -4.02%
C) 0.11%, 1.08%
D) 1%, 1.12%

Answer 10

A) 0.4%, -6.67%

Question 11

Dividend Payments

Closing Price Dividend
$113.00 $0.00
$131.00 $0.51
$147.00 $0.00
$135.00 $0.00
$128.00 $0.55

Answer 11

Total Holding Period:
HPR 1 16.4%
HPR 2 12.2%
HPR 3 -8.2%
HPR 4 -4.8%

Arithmetic Average Return:
3.9%

Standard Deviation:
SD 0.014856914
SD R 12.19%

Question 12

Dividend Payments

Closing Price Dividend
$100.00 $0.00
$105.00 $0.00
$110.00 $0.00
$108.00 $0.00
$112.00 $0.00

Answer 12

Total Holding Period:
HPR 1 5.0%
HPR 2 4.8%
HPR 3 -1.8%
HPR 4 3.7%

Arithmetic Average Return:
2.9%

Standard Deviation:
SD 0.00102611
SD R 3.20%

Question 13

Tesla, Inc.

A) 20.5%
B) 22.1%
C) 5.5%
D) -10%
E) 7%

Answer 13

A) 20.5%

Question 14

Amazon.com

A) 60.00%
B) 66.98%
C) 55.00%
D) 71.25%

Answer 14

B) 66.98%