Podcast
Questions and Answers
What is a key benefit of diversification in a portfolio?
What is a key benefit of diversification in a portfolio?
- Increased dependence on a single asset
- Reduction in potential returns
- Reduced risk through unsystematic risk reduction (correct)
- Increased risk exposure
What is the primary objective of financial analytics in Mergers and Acquisitions?
What is the primary objective of financial analytics in Mergers and Acquisitions?
- To minimize tax liabilities
- To reduce operational costs
- To identify potential synergy and value creation (correct)
- To optimize portfolio returns
What is the primary risk associated with investing in cryptocurrency?
What is the primary risk associated with investing in cryptocurrency?
- Regulatory risk (correct)
- Credit risk
- Liquidity risk
- Market risk
What is the formula to calculate the return of a single investment?
What is the formula to calculate the return of a single investment?
What is the primary method to calculate portfolio returns?
What is the primary method to calculate portfolio returns?
Which of the following scenarios is most likely to result in a decrease in portfolio risk?
Which of the following scenarios is most likely to result in a decrease in portfolio risk?
What is the primary advantage of using financial analytics in Mergers and Acquisitions?
What is the primary advantage of using financial analytics in Mergers and Acquisitions?
An investor holds a portfolio consisting of two stocks with a correlation coefficient of 0.7. If the return of one stock is 10%, what is the minimum return of the other stock required to reduce the portfolio's overall risk?
An investor holds a portfolio consisting of two stocks with a correlation coefficient of 0.7. If the return of one stock is 10%, what is the minimum return of the other stock required to reduce the portfolio's overall risk?
A cryptocurrency investor holds a portfolio with a beta of 1.5. If the market return is 8%, what is the expected return of the portfolio?
A cryptocurrency investor holds a portfolio with a beta of 1.5. If the market return is 8%, what is the expected return of the portfolio?
An investor diversifies their portfolio by allocating 60% to a domestic stock index and 40% to an international stock index. If the domestic stock index returns 6% and the international stock index returns 4%, what is the portfolio's return?
An investor diversifies their portfolio by allocating 60% to a domestic stock index and 40% to an international stock index. If the domestic stock index returns 6% and the international stock index returns 4%, what is the portfolio's return?
