Here they are. I have 1.20 hours starting at 9:20 EST pm.

1. The excess return required from a risky asset over that required from a risk-free
asset is called the:
risk premium.
geometric premium.
excess return.
average return.
variance.

2. On average, for the period 1926 through 2005:

the real rate of return on U.S. Treasury bills has been negative.
small company stocks have underperformed large company stocks.
long-term government bonds have produced higher returns than long-term
corporate bonds.
the risk premium on long-term corporate bonds has exceeded the risk
premium on long-term government bonds.
the risk premium on large company stocks has exceeded the risk premium on
small company stocks.

3. Which one of the following is a correct statement concerning risk premium?

The greater the volatility of returns, the greater the risk premium.
The lower the volatility of returns, the greater the risk premium.
The lower the average rate of return, the greater the risk premium.
The risk premium is not correlated to the average rate of return.
The risk premium is not affected by the volatility of returns.

4. The percentage of a portfolios total value invested in a particular asset is called

that assets:
portfolio return.
portfolio weight.
portfolio risk.
rate of return.
investment value.

5. Risk that affects at most a small number of assets is called _____ risk.
portfolio
undiversifiable
market
unsystematic

total

6. The amount of systematic risk present in a particular risky asset, relative to the
systematic risk present in an average risky asset, is called the particular assets:
beta coefficient.
reward-to-risk ratio.
total risk.
diversifiable risk.
Treynor index.

7. The risk premium for an individual security is computed by:

multiplying the securitys beta by the market risk premium.
multiplying the securitys beta by the risk-free rate of return.
adding the risk-free rate to the securitys expected return.
dividing the market risk premium by the quantity (1 beta).
dividing the market risk premium by the beta of the security.

8. When computing the expected return on a portfolio of stocks the portfolio weights
are based on the:
number of shares owned in each stock.
price per share of each stock.
market value of the total shares held in each stock.
original amount invested in each stock.
cost per share of each stock held.

9. The expected return on a portfolio:

can be greater than the expected return on the best performing security in the
portfolio.
can be less than the expected return on the worst performing security in the
portfolio.
is independent of the performance of the overall economy.
is limited by the returns on the individual securities within the
portfolio.
is an arithmetic average of the returns of the individual securities when the
weights of those securities are unequal.

10.
The excess return earned by an asset that has a beta of 1.0 over that earned by a
risk-free asset is referred to as the:

market rate of return.

market risk premium.
systematic return.
total return.
real rate of return.

11.
The weighted average of the firms costs of equity, preferred stock, and after tax
debt is the:
reward to risk ratio for the firm.
expected capital gains yield for the stock.
expected capital gains yield for the firm.
portfolio beta for the firm.
weighted average cost of capital (WACC).

12. If the CAPM is used to estimate the cost of equity capital, the expected excess
market return is equal to the:
return on the stock minus the risk-free rate.
difference between the return on the market and the risk-free rate.
beta times the market risk premium.
beta times the risk-free rate.
market rate of return.

13. Beta is useful in the calculation of the:

company's variance.
company's discount rate.
company's standard deviation.
unsystematic risk.

14. A firm with high operating leverage has:

low fixed costs in its production process.
high variable costs in its production process.
high fixed costs in its production process.
high price per unit.
low price per unit.

15. If a firm has low fixed costs relative to all other firms in the same industry, a

large change in sales volume (either up or down) would have:

a smaller change in EBIT for the firm versus the other firms.
no effect in any way on the firms as volume does not effect fixed costs.
a decreasing effect on the cyclical nature of the business.
a larger change in EBIT for the firm versus the other firms.