Which of the following statements is LEAST consistent with the lecture material on investing in crypto-currencies such as Bitcoin:

Which of the following statements is LEAST consistent with the features of an ETF as explained in the lecture content:

Which of the following statements about the ‘Portfolio Theory’ section of the lecture material are TRUE:

1. The standard deviation of a portfolio of shares in two different companies will always be less than the weighted average of the standard deviations of the individual shares.
2. A share portfolio that follows a diversified market index is expected to offer a reasonably efficient trade-off between expected return and risk.

You plan to invest 28% of your portfolio in Company A with the remainder to be invested in Company B. The standard deviation of Company A’s stock returns is 15%. The standard deviation of Company B’s stock returns is 21%. The correlation between the stock returns of Company A and Company B is 0.64. What is the standard deviation of your portfolio’s returns (as a percentage to two decimal places)?

Your answer should be expressed as a percentage to 2 decimal places but do not include a percent sign. For example, if your answer is 10.237%, you should enter 10.24. If your answer is 10.233%, you should enter 10.23. Please do not enter your answer as a decimal, such as 0.1024.

Which of the following statements is LEAST consistent with the factors that drive investment returns in the long-run based on the lecture material:

Which of the following statements about the types of risk when investing in shares is LEAST consistent with the lecture material:

Which of the following statements about the ‘Valuing Shares’ section of the lecture material are TRUE:

1. The long-term returns of a diversified share portfolio will tend to be driven by real economic growth (which itself is driven by growth in productivity), inflation and the average dividend yield paid by the shares.
2. The factors that drive the total returns from investing in the shares of an individual company include interest rates, the returns on an average share on the stockmarket, the sensitivity of the company’s share price to movements in the economy and any relevant information that is specific to the company or the industry within which it operates.

A company’s shares are expected to pay a dividend of $6.52 per share in one year. The dividend is expected to grow at a real rate of 1.2% per year indefinitely. The required real rate of return on the company’s shares is 8% per year. Calculate the stock price (to the nearest cent).

Your answer should be to the nearest cent and you should not include a dollar sign or commas. If your answer is $12.187, you should enter your answer as 12.19. If your answer is $12.183, you should enter your answer as 12.18.

Which of the following is LEAST consistent with the lecture material on the rights of ordinary shareholders?

Which of the following statements is LEAST consistent with the lecture material on ‘What are Shares?’: