You plan on purchasing some property that will cost you €10,000 today. You anticipate receiving rent of €2,000 on the property during the year. You also expect to be able to sell the property for €11,000 at the end of the year. What is the total return on the investment?
30.00%
20.00%
10.00%
zero since the gain is realized
Which of the following is a characteristic of a well diversified portfolio?
very little systematic risk
very little unsystematic risk
no systematic risk
none of the above
Asset A has generated returns of 10%, 30%, 50%, and 70% over the last four years. What is the variance of the returns of Asset A?
0.2582
0.2000
0.1000
0.0667
Asset A has generated returns of 10%, 30%, 50%, and 70% over the last four years. What is the standard deviation of the returns of Asset A?
0.2582
0.2000
0.1000
0.0667
If you were to graph the return of different asset classes over time, which asset class would have the most jagged graph?
US treasuries
US bonds
corporate bonds
ordinary shares
Based upon the following risk and return characteristics, what best describes the expected return of Stock A:
Stock | Expected Return | Systematic Risk | Unsystematic Risk A ? 5 units 5 units B 10% 5 units 10 units
20%
15%
10%
5%
You are considering an investment that has an expected return of 30% and a standard deviation of the distribution of returns equal to 20%. If you assume a normal distribution, what is the probability that the investment will have a return greater than 50% in the first year?
16%
50%
66%
84%
You purchased a share for €110 one year ago and the stock generated a 20% total return during the year. If you received a dividend of €20 on the share then what is the current price of the share?
€132.00
€120.00
€112.00
€110.00
You plan on purchasing some property that will cost you €10,000 today. You anticipate receiving rent of €2,000 on the property during the year. You also expect to be able to sell the property for €11,000 at the end of the year. What is the income related return on the investment?
30.00%
20.00%
10.00%
zero since the gain is realized
The precise measure of an investment's performance is called: