Analysis and recommendations of individual brokerage firm

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Reference no: EM131444718

1) If a stock is purchased at the beginning of a? year, a single dividend is paid at the end of the year and the stock is sold immediately after the dividend has been received. In this case

A. the holding period return. is lower than the internal rate of return.

B. it is not possible to calculate the internal rate of return.

C. the internal rate of return equals the holding period return.

D. the internal rate of return is lower than the holding period return.

2) An investment produced annual rates of return of? 4%, 8%,? 14% and? 6%, respectively, over the past four years. What is the standard deviation of these? returns?

A. ?4.6% B. ?4.3% C. ?3.7% D. ?4.1%

3) The holding period return should not be used when analyzing investments with unequal holding periods.

True False

4) Given a real rate of interest of 2.1?%, an expected inflation premium of 4.7%,and risk premiums for investments A and B of 5.5 % and 7.2% ?respectively, find the? following:

a. The? risk-free rate of return RF. b. The required returns for investments A and B. c. The required return for investment B is.

5) The published analysis and recommendations of an individual brokerage firm is called a

A. ?broker's subscription report.

B. prospectus.

C. back−office research report.

D. comparative data source.

Reference no: EM131444718

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