Annales finance 2009 2010 esc

2434 mots 10 pages
Sample exam solutions
Sample exam #1: 20 questions Sample exam #2: 20 questions Sample exam #3: 20 questions

Sample exam #1

Answer: A

QUESTION 1
A stock’s price on December 1 was $50, and on December 31 of the same year it was $40. The stock also paid a $2 dividend in December. What was this stock’s rate of return in December?

(40+2-50)/50= -16%.

A. B. C. D. E. F.

-16% -20% -21% -24% -25% -30%

Sample exam #1

Answer: C

QUESTION 2
The graph below shows the market price of assets A, B, and C recorded at monthly intervals over the course of one year. None of these assets paid dividends during this year. Based on this graph, rank these three assets from the lowest standard deviation of returns to the highest.

Monthly prices of assets A, B, and C
70 60 50

We do not have the exact returns so we cannot calculate the standard deviations exactly. It is nonetheless easy to see that returns on Asset B are the least volatile of the three assets. Choosing between A and C, clearly A has the higher volatility of returns. So B is the least risky, followed by A, and followed by C. NB: if you are curious, the actual standard deviations of monthly returns (which, again, you cannot calculate directly from the graph – you need to know the exact returns!) are as follows: asset A: 9.1%;

Price

40 30 20 10 0 0 1 2 3 4 5 6 7 8 9 10 11 12

Asset A Asset B Asset C

asset B: 2.9%; asset C: 16.4%.

Month

A. B. C. D. E. F.

A, B, C A, C, B B, A, C B, C, A C, A, B C, B, A

Sample exam #1

Answer: A

QUESTION 3
Refer again to the conditions of the previous question. What is the ranking, from lowest to highest, of these assets’ geometric average monthly returns?

We know from lecture that the geometric average return summarizes the investment’s past performance. It is easy to see that during these 12 months, A performed the worst, B performed better, and C performed the best.

A. B. C. D. E. F.

A, B, C A, C, B B, A, C B, C, A C,

en relation

  • Exam IFSI IFSI
    850 mots | 4 pages
  • Biln cpt
    732 mots | 3 pages
  • Exercices iade
    535 mots | 3 pages
  • Controle de gestion aps
    646 mots | 3 pages
  • Busness plan restaurant allemand implanter en lettonie
    11664 mots | 47 pages
  • Métro.inc
    1140 mots | 5 pages
  • Df2 adf
    863 mots | 4 pages
  • plan comptable marocain
    6741 mots | 27 pages
  • Diag peugeot
    1078 mots | 5 pages
  • Synth Se Femme Objet
    333 mots | 2 pages
  • le mythe de Cronos
    664 mots | 3 pages
  • Gestion bancaire: kmv
    1154 mots | 5 pages
  • Finan
    1381 mots | 6 pages
  • Teléchargement
    1321 mots | 6 pages
  • Philosophie
    453 mots | 2 pages