1. Risk from investing in a security refers to:
a. volatility of security price
b. uncertainty about the future stock price
c. volatility of security returns
d. probability of loss from investing in the security
2. The expected value of annual returns of a portfolio is 10
percent with standard deviation of 20 percent. The compounded
annual growth rate from investing in the portfolio is expected to
be:
a. 10 percent
b. less than 10 percent
c. more than 10...
17. The type of risk that is associated with the
specific operations of the firm is referred to as:
A. systematic risk
B. non diversifiable risk
C. financial risk
D. business risk
E. both C and D
18. A very risk averse individual would most likely
choose a stock with a beta coefficient of:
A. equal to 1
B. greater than 1
C. greater than 2
D. equal to 2
E. less than 1
A stock price is currently AUD 70; the risk-free rate is 5% and
the volatility is 30%. What is the value of a two-year American put
option with a strike price of AUD 72
The volatility of a share price affects the options price, the
higher the volatility, the higher is the options price. There are
many ways of computing volatility, but a popular method is to find
the coefficient of variation of daily closing stock prices for a
year. Calculate the volatility of the following share prices using
daily closing price data from 1 Jan 2019 to 31 Dec 2019 in ASX from
Yahoo Finance.
BHP (BHP Group Limited)
CSL (CSL Limited)
CBA...
The volatility of a share price affects the options price, the
higher the volatility, the higher is the options price. There are
many ways of computing volatility, but a popular method is to find
the coefficient of variation of daily closing stock prices for a
year. Calculate the volatility of the following share prices using
daily closing price data from 1 Jan 2019 to 31 Dec 2019 in ASX from
Yahoo Finance. BHP (BHP Group Limited) CSL (CSL Limited) CBA...
Of the following, who should have PRIMARY responsibility for
assessing the security risk associated with an outsourced cloud
provider contract?
A. Information security manager
B. Compliance manager
C. Chief information officer
D. Service delivery manager
Correct Answer: A????? or
C????? or D???????
______________________
Note
■ Some websites claim
that the correct answer is "D" ("Service delivery manager").
■ Others websites
claim that the correct answer is "C" ("Chief information officer").
I found also this article on the web "It is...
A futures price is currently $3000 and its volatility is 25%.
The risk-free interest rate is 5% per annum.
a) Use a two-step binomial tree to derive the value today of a
one-year European put option with a strike price of $2900 written
on the futures contract.
b) Use put-call parity to value the one-year European call
option with a strike price of $2900 written on the futures
contract.
c) How would you hedge today a short position in the...