Finance pratice problems

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Finance pratice problems
2011-12-05 23:41:46
LSU Financ

pratice probs form chap 12 and 13 mostly terms and ocncepts
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  1. an effective capital market defined as a movement in wich
    security prices that reflect and leave infromation
  2. the notion that capital markets succes the NYSCs price securiteis fairly based on availiable information is caalled
    effective market hypothoses
  3. the capital gians yeild considers what
    the beginning price of an asset & the ending price
  4. the total return on a sequirty is said to be
    dividen yield and capital gaings yield
  5. what catagories of securitys have the highest average retur for the person 1926-2005
    small company stock
  6. what catagory of securities had the lowest average of premium for the period 1926-2005?
    U.S. Treasury bills
  7. which catergires of secuirith has the most votile returns are the period of 1926-2005?
    small company stocks (17.1 histrocial average of stock is measured by standared devation)
  8. what was the average risk premium on U.S. treasurey bill over the period 1926-2005?
    0% (risk preimum minus risk preimium)
  9. In an extreme market, the price of a securith will:
    react immediatly to new infor with no further impact related to the butmino
  10. trading an inurance info does not offer any advanages if the financial markets ar
    strong form efficient
  11. according to theory, studying historical stock prices movements to identivy misprice stocks is...
    is ineffective even wen the market's only a weak form efficent. (no market rules embrace historical study)
  12. the U.S. securities & exchange commision preriodically charges individuals with inside trading and claims the individuals have made un fair investments. based on this fact you say the finincail markets are best ___ effecient
    semistrong (public info is pried in)
  13. one year ago you purchased stock at 28.25 it pays quaty discounts of .35 per share. today it is worth 31.25 per share. what i the total capital gaines to date for this investment?
    • 31.25-28.25 = 2.50
    • dividen 31.25/28.25
  14. six months ago you ought 50 shares of stock in 1st place co at 41.68/share. 1st place pays a qurtly divident of .40 a share. today you sold all shares for 44.12/share. wat is total dividen come for this investment
  15. one year ago you bough 200 shars at 15.54/sare. stock pays annual divident of .20 per share. you sold all shares for 17.70 per share. total dollar return was?
  16. you got 300 shares at 35.86/share. 1st year yo recieved total dividen income of 336. what is the divident yeild
    • find divident, divide by total n of ...
    • 3.1%
  17. whose responsiiility is it to elimanate unestimated risk
    the individual's responsibilty
  18. another name ofr systmatic risk
    market risk
  19. what risk is irrelavent to a well-diversified marekt?
    unsystmatic risk
  20. what is an example of diversiable risk fed infane work plan laws cost of weakness insure increase nation worth
    natural things