[单项选择]Stock A has an expected return of 18% and a standard deviation of 40%. Stock B has an expected return of 12% and a standard deviation of 20%. The correlation between returns for A and B is 0.35. Which of the following statements is true for portfolios comprised of only A and B （）
A. Any investor holding only A and B can always reduce risk by increasing the proportion of B in his portfolio.
B. Many investors can reduce risk by increasing the proportion of B, but at some point additional B will increase portfolio risk.
C. For any investor, portfolio risk is independent of the proportions of A and B held.

[单项选择]Stock A has a standard deviation of O. 5 and Stock B has a standard deviation of 0.3. Stock A and Stock B are perfectly positively correlated. According to Markowitz portfolio theory how much should be invested in each stock to minimize the portfolio’s standard deviation（）
A. 100% in Stock A.
B. 50% in Stock A and 50% in Stock B.
C. C. 100% in Stock

[单项选择]A portfolio manager adds a new stock that has the same standard deviation of returns as the existing portfolio but has a correlation coefficient with the existing portfolio that is less than +1. Adding this stock will have what effect on the standard deviation of the revised portfolio’s returns The standard deviation will:（）
A. increase.
B. remain unchanged.
C. decrease.

[单项选择]Consider a stock selling for $ 23 that is expected to increase in price to $ 27 by the end of the year and pay a $ 0.50 dividend. If the risk-free rate is 4 percent, the expected return on the market is 8.5 percent, and the stock’s beta is 1.9, what is the current valuation of the stock The stock:（）
A. is overvalued.
B. is undervalued.
C. is correctly valued.

[简答题]The university has offered everything he expected.

[单项选择]The expected life-span of Beijing residents has gone up by _______compared with that a decade earlier.
A. 1.5 years
B. 1.4 years
C. 1.2 years
D. 1.1 years

[单项选择]The country has, as expected, got itself into social unrest ______ the government has lost control.
A. over that
B. that
C. over which
D. which

[单项选择]A European stock index call option has a strike price of $1 160 and a time to expiration of 0.25 years. Given a risk-flee rate of 4 percent, if the underlying index is trading at $1 200 and has a multiplier of 1, the lower bound for the option price is closest to:（）
A. $ 28.29.
B. $ 40.00.
C. $ 51.32.

[单项选择]A stock’s abnormal rate of return is defined as the:（）
A. expected risk-adjusted rate of return minus the market rate of return.
B. actual rate of return less the expected risk-adjusted rate of return.
C. the market rate of return less the actual rate of return.

[单项选择]A corporation being analyzed has a return on equity (ROE) of 14.3 percent compared to the industry average of 11.8 percent. Which of the following statements about the company, based on the DuPont equation, could explain the higher than average ROE （）
A. The net profit margin is lower than the industry average, but the company is using a higher proportion of debt financing than the industry average.
B. All of the statements could explain the higher than average ROE.
C. The asset turnover is lower than the industry average, but the net profit margin is higher than the industry average.

[单项选择]

Americans have never had nationaI education standards.Goals for what public schools should teach are set by state and local school boards. Their members are often elected.
But some Americans say the lack of national standards is wrong in a competitive global economy. Former president Bill Clinton said it was as if somehow school boards "could legislate differences in algebra or math or reading. "
President George W. Bush and Congress expanded federal intervention. His education law, still in effect, required states to show yearly progress in student learning as measured by the states’ own tests.
Now, the Obama administration supports what are known as the Common Core State Standards. These were developed in a yearlong process led by state governors and chief state school officers. Texas and Alaska were the only states not to take part.
The standards are in two subject areas, English-language arts and mathematics. They establish goal
A. Chief state school officers.
B. Local Schoolmasters.
C. Local and state school boards.
D. Local education bureau.

[单项选择]
The differences in living standards around the world are vast. In 1993, the average American had an income of about $25,000. In the same year, the average Mexican earned $7,000, and the average Nigerian earned $1,500. Not surprisingly, this large variation in average income is reflected in various measures of the quality of life. Changes in living standards over time are also large. In the United States, incomes have historically grown about 2 percent per year (after adjusting for changes in the cost of living). At this rate, average income doubles every 35 years. In some countries, economic growth has been even more rapid. In Japan, for instance, average income has doubled in the past 20 years, and in South Korea it has doubled in the past 10 years.
What explains these large differences in living standards among countries and over time The answer is surprisingly simple. Almost all variation in living standards is at
A. modest
B. poor
C. meaningless
D. plentiful