Module 2: Numeric Questions

For students

Last updated: 23/09/2025 22:42

The questions are based on or inspired by the following references:


💡 You can also press Ctrl + P (or Cmd + P on Mac) to print or save your responses as a .pdf file.


⚠️ These exercises are powered by AI-assisted technologies and may contain occasional formatting or logic errors. Please report any issues you encounter so I can improve the experience.


📘 Part 1 (until Midterm)

Module Chapter Slides T/F MCQ Numeric Long Self-quiz
2 ch10 🎞️ 🔢 📝 🧪

Answer the following questions based on the discussions in class.

Login

<input type="checkbox" id="remember-me" checked />
<label for="remember-me">Remember me</label>
Q1.

CAPM Cost of Capital

Suppose the market risk premium is 8% and the risk‑free interest rate is 4.99%.

Q2.

Buy-hold Return

You bought a stock for $ 55.98 per share and sold it later for $ 56.98. It paid $ 2.2 in dividends over the period.

Q3.

Total and Annualized Return Over Multiple Years

You bought a stock for $91.79 per share and sold it for $146.54 after 2 years. You received $3.9 in dividends per year.

Q4.

Average and Standard Deviation of Returns

The past five annual returns of a stock were (in %): 11.82, 9.11, 12.68, 7.9, 7.24

Q5.

Expected Return of a Mixed Portfolio

Suppose you invest 66.9% of your wealth in the market portfolio, which has an expected return of 11.43%, and the remainder in the risk‑free asset, which has a return of 3.16%.

Q6.

Portfolio Return from Two Stocks

You invested 49.4% of your capital in Stock A, which returned 10.3%, and the remainder in Stock B, which returned 3.22%.

Q7.

Compounded Annual Return from Semi‑Annual Returns

A stock returned 5.15% in the first half of the year and 6.42% in the second half of the year.

Q8.

Arithmetic vs. Geometric Average Return

A stock yielded returns of 2.42% and 8.46% over two consecutive years.

Q9.

Market Risk Premium and Expected Return

The risk‑free rate is 2.84%, the expected market return is 9.9%, and the beta of a stock is 1.21.

🔙