Finance 343 Investments And Portfolio Management Exam 2 Chapter 5-8

Finance 343 Investments and Portfolio Management

Exam 2 Chapter 5-8

Matching -problem 1- worth 15 points

Place the letter to the matching answer next to the number

1.  Market risk a. price reflect available information

2.  Firm Specific Risk b. Avoid security analysis

3.  Weighted Average of Security Returns c. portfolio expected returns

4.  Sharpe d. price changes are unpredictable 

5.  Beta e. Excess abnormal rate of return

6.  Efficient Frontier  f. Graph

7.  Optimal Risk Portfolio g. Required rate of return; beta

8.  Passive Strategy  h. Stock Price Volatility

9.  Complete Portfolio i. Research Using determinants of   values

10.  Capital Asset Pricing Model j. Includes all assets

11.   Alpha k. Price Research using patterns 

12.  Random Walk l. Best Combination Of Assets

13.  Efficient market Hypothesis m. Systematic Risk

14.  Technical Analysis n. Diversification Risk

15.  Fundamental Analysis o. Index Model

2. You have been given this probability distribution for the holding-period return for KMP stock: