Fundamentals of Investments: Valuation and Management 9th Edition by Bradford Jordan test bank
1.
Award: 1.00 point
The total dollar return on a share of stock is defined as the:
change in the price of the stock over a period.
dividend income divided by the beginning price per share.
capital gain or loss plus any dividend income.
change in the stock price divided by the original stock price.
annual dividend income received.
See Section 1.1
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.1 Returns
2.
Award: 1.00 point
The dividend yield is defined as the annual dividend expressed as a percentage of the:
average stock price.
initial stock price.
ending stock price.
total annual return.
capital gain.
See Section 1.1
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.1 Returns
3.
Award: 1.00 point
The capital gains yield is equal to:
(P t − P t + 1 + D t + 1 )/ P t + 1 .
(P t + 1 − P t + D t )/P t .
D t + 1 /P t .
(P t + 1 − P t )/P t .
(P t + 1 − P t )/P t + 1 .
See Section 1.1
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.1 Returns
4.
Award: 1.00 point
When the total return on an investment is expressed on a per-year basis it is called the:
capital gains yield.
dividend yield.
holding period return.
effective annual return.
initial return.
See Section 1.1
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.1 Returns
5.
Award: 1.00 point
The risk-free rate is:
another term for the dividend yield.
defined as the increase in the value of a share of stock over time.
the rate of return earned on an investment in a firm that you personally own.
defined as the total of the capital gains yield plus the dividend yield.
the rate of return on a riskless investment.
See Section 1.3
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
6.
Award: 1.00 point
The rate of return earned on a U.S. Treasury bill is frequently used as a proxy for the:
risk premium.
deflated rate of return.
risk-free rate.
expected rate of return.
market rate of return.
See Section 1.3
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
7.
Award: 1.00 point
The risk premium is defined as the rate of return on:
a risky asset minus the risk-free rate.
the overall market.
a U.S. Treasury bill.
a risky asset minus the inflation rate.
a riskless investment.
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
8.
Award: 1.00 point
The additional return earned for accepting risk is called the:
inflated return.
capital gains yield.
real return.
riskless rate.
risk premium.
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
9.
Award: 1.00 point
The standard deviation is a measure of:
volatility.
total return.
capital gains.
changes in dividend yields.
changes in the capital gains rate.
See Section 1.4
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.4 Return
Variability: The
Award: 1.00 point
The total dollar return on a share of stock is defined as the:
change in the price of the stock over a period.
dividend income divided by the beginning price per share.
capital gain or loss plus any dividend income.
change in the stock price divided by the original stock price.
annual dividend income received.
See Section 1.1
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.1 Returns
2.
Award: 1.00 point
The dividend yield is defined as the annual dividend expressed as a percentage of the:
average stock price.
initial stock price.
ending stock price.
total annual return.
capital gain.
See Section 1.1
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.1 Returns
3.
Award: 1.00 point
The capital gains yield is equal to:
(P t − P t + 1 + D t + 1 )/ P t + 1 .
(P t + 1 − P t + D t )/P t .
D t + 1 /P t .
(P t + 1 − P t )/P t .
(P t + 1 − P t )/P t + 1 .
See Section 1.1
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.1 Returns
4.
Award: 1.00 point
When the total return on an investment is expressed on a per-year basis it is called the:
capital gains yield.
dividend yield.
holding period return.
effective annual return.
initial return.
See Section 1.1
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.1 Returns
5.
Award: 1.00 point
The risk-free rate is:
another term for the dividend yield.
defined as the increase in the value of a share of stock over time.
the rate of return earned on an investment in a firm that you personally own.
defined as the total of the capital gains yield plus the dividend yield.
the rate of return on a riskless investment.
See Section 1.3
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
6.
Award: 1.00 point
The rate of return earned on a U.S. Treasury bill is frequently used as a proxy for the:
risk premium.
deflated rate of return.
risk-free rate.
expected rate of return.
market rate of return.
See Section 1.3
References
Multiple Choice Learning Objective:
01-01 How to
calculate the return
on an investment
using different
methods.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
7.
Award: 1.00 point
The risk premium is defined as the rate of return on:
a risky asset minus the risk-free rate.
the overall market.
a U.S. Treasury bill.
a risky asset minus the inflation rate.
a riskless investment.
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
8.
Award: 1.00 point
The additional return earned for accepting risk is called the:
inflated return.
capital gains yield.
real return.
riskless rate.
risk premium.
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
9.
Award: 1.00 point
The standard deviation is a measure of:
volatility.
total return.
capital gains.
changes in dividend yields.
changes in the capital gains rate.
See Section 1.4
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.4 Return
Variability: The