兹维博迪金融学第二版试题库.docx
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兹维博迪金融学第二版试题库
兹维博迪金融学第二版试题库10TB
(1)(总15页)
ChapterTen
PrinciplesofRiskManagement
Thischaptercontains30multiplechoicequestions,10shortproblems,and5longerproblems.
MultipleChoice
1.________that“matters”becauseifaffectspeople'swelfare.________existswheneveronedoesnotknowforsurewhatwilloccurinthefuture.
(a)Uncertaintyisrisk;Uncertainty
(b)Riskisuncertainty;Uncertainty
(c)Riskisuncertainty;Risk
(d)Uncertaintyisrisk;Risk
Answer:
(b)
2.________isameasureofwillingnesstopaytoreduceone'sexposuretorisk.
(a)Riskaversion
(b)Riskavariciousness
(c)Riskpredilection
(d)Riskinflation
Answer:
(a)
3.Whenchoosingamonginvestmentalternativeswiththesameexpectedrateofreturn,ariskaverseindividualchoosestheonewiththe________risk.
(a)surest
(b)mostuncertain
(c)lowest
(d)highest
Answer:
(c)
4.________isaparticulartypeofriskpeoplefacebecauseofthenatureoftheirbusinessorpatternofconsumption.
(a)Operationalefficiencyexposure
(b)Opportunityexposure
(c)Riskexposure
(d)Riskreduction
Answer:
(c)
5.________areinvestorswhotakepositionsthatincreasetheirexposuretocertainrisksinthehopeofincreasingtheirwealth.
(a)Operationsinsurers
(b)Foreignexporters
(c)Hedgers
(d)Speculators
Answer:
(d)
6.Theriskinessofanassetoratransaction________beassessedinisolationorintheabstract.
(a)can
(b)cannot
(c)must
(d)itvariesaccordingtothesituation
Answer:
(b)
7.Bydefinition,________areinvestorswhotakepositionstoreducetheirexposures.
(a)operationsinsurers
(b)foreignexporters
(c)hedgers
(d)speculators
Answer:
(c)
8.Theriskoflossarisingfromobsolescenceduetotechnologicalchangeorchangesinconsumertasteisanexampleof________.
(a)unemploymentrisk
(b)liabilityrisk
(c)financial-assetrisk
(d)dconsumer-durableassetrisk
Answer:
(d)
9.Theriskarisingfromholdingdifferentkindsoffinancialassetssuchasequitiesorfixedincomesecuritiesdenominatedinoneormorecurrenciesisanexampleof________.
(a)unemploymentrisk
(b)liabilityrisk
(c)financial-assetrisk
(d)consumer-durableassetrisk
Answer:
(c)
10.Businessrisksofthefirmarebornebyits________.
(a)shareholders
(b)creditors
(c)employees
(d)alloftheabove
Answer:
(d)
11.________consistsoffiguringoutwhatthemostimportantriskexposuresarefortheunitofanalysis.
(a)Riskassessment
(b)Selectionofriskmanagementtechniques
(c)Implementation
(d)Riskidentification
Answer:
(d)
12.Whichofthefollowingismostlikelytoneedalotoflifeinsurance?
(a)asinglepersonwithnodependents
(b)adivorcedpersonwithnodependents
(c)adouble-incomecouplewithnokids
(d)marriedpersonwithchildren
Answer:
(d)
13.________isthequantificationofthecostsassociatedwiththerisksthathavebeenidentifiedinthefirststepofriskmanagement.
(a)Riskassessment
(b)Selectionofriskmanagementtechniques
(c)Implementation
(d)Review
Answer:
(a)
14.Sellingariskyassettosomeoneelseandbuyinginsuranceareexamplesof________.
(a)riskavoidance
(b)losspreventionandcontrol
(c)risktransfer
(d)riskretention
Answer:
(c)
15.Oneissaidto________ariskwhentheactiontakentoreduceone’sexposuretoalossalsocausesonetogiveupthepossibilityofagain.
(a)insure
(b)diversify
(c)hedge
(d)payapremiumwith
Answer:
(c)
16.Whenyou________youpayapremiumtoeliminatetheriskoflossandretainthepotentialforgain.
(a)insure
(b)diversify
(c)hedge
(d)speculate
Answer:
(a)
17.Inorderfordiversificationtoreduceyourriskexposure,therisksmustbe________
(a)lessthanperfectlycorrelatedwitheachother
(b)morethanperfectlycorrelatedwitheachother
(c)uncorrelated
(d)noneoftheabove
Answer:
(a)
18.Thedemandforwaystomanageriskhasbeenincreasedby________.
(a)increasedvolatilityofexchangerates
(b)increasedvolatilityofinterestrates
(c)increasedvolatilityofcommodityprices
(d)alloftheabove
Answer:
(d)
19.Moralhazardandadverseselectionareexamplesof________.
(a)transactionscosts
(b)incentiveproblems
(c)transferencecosts
(d)bothaandb
Answer:
(b)
20.
________isdefinedasquantitativeanalysisforoptimalriskmanagement.
(a)Portfoliotheory
(b)Corporatetheory
(c)Diversificationtheory
(d)Probabilitytheory
Answer:
(a)
21.Anassetportfolio'sexpectedreturnisidentifiedwiththe________ofthedistribution,anditsriskwiththe________.
(a)variance;average
(b)mean;standarddeviation
(c)standarddeviation;average
(d)median;normaldistribution
Answer:
(b)
22.SupposeyoubuysharesofRayFranstockatapriceof$110pershareandintendtoholdthemforayear.SupposeRayFranpaysadividendof$pershareoverthatyear.ComputethetotalrateofreturnonashareofRayFranstockifattheendoftheyearyousellitfor$pershare.
(a)%
(b)%
(c)%
(d)%
Answer:
(d)
23.The________astock'svolatility,the________therangeofpossibleoutcomesandthe________theprobabilitiesofthosereturnsattheextremesoftherange.
(a)larger;narrower;larger
(b)larger;narrower;smaller
(c)larger;wider;larger
(d)larger;wider;smaller
Answer:
(c)
24.
ConsidertheprobabilitydistributionofrateofreturnonRayFranstock:
RateofReturnProbability
40%
15%
–8%
ComputetheexpectedrateofreturnonRayFranstock.
(a)%
(b)%
(c)%
(d)%
Answer:
(c)
25.Refertoquestion24.NowcomputethestandarddeviationofRayFranstock.
(a)%
(b)%
(c)%
(d)%
Answer:
(c)
26.Considerastockwithanexpectedreturnof15%andastandarddeviationof8%thatisnormallydistributed.Whatistheconfidenceintervalforthisstock'srateofreturn?
27.
(a)(7%,23%)
(b)(–9%,39%)
(c)(–1%,39%)
(d)(–1%,31%)
Answer:
(d)
Forquestions27through30,usethefollowingtable:
HistoricalReturns
Year
Toys’R’Me
Rouge
1
2
3
4
5
15%
20%
-5%
12%
10%
13%
17%
-7%
8%
6%
28.WhatarethemeanreturnsforToys’R’MeandRouge,respectively?
29.
(a)ToysRMe:
%;Rouge:
%
(b)ToysRMe:
%;Rouge:
%
(c)ToysRMe:
%;Rouge:
%
(d)ToysRMe:
%;Rouge:
%
Answer:
(b)
30.WhatisthestandarddeviationofreturnsforToysRMeForRouge
(a)ToysRMe:
%;Rouge:
%
(b)ToysRMe:
%;Rouge:
%
(c)ToysRMe:
%;Rouge:
%
(d)ToysRMe:
%;Rouge:
%
Answer:
(b)
31.SupposethereturnsforToysRMeandRougearenormallydistributed.DeterminetheconfidenceintervalforToysR.Me.
(a)%,%)
(b)(–%,%)
(c)(–%,%)
(d)%;%)
Answer:
(d)
32.
DeterminetheconfidenceintervalforRouge.
(a)%,%)
(b)(–,%)
(c),%)
(d)(–,%)
Answer:
(c)
ShortProblems
1.Brieflydistinguishbetweenthethreemethodsavailabletotransferrisk:
hedging,insuringanddiversifying.
Answer:
Hedging:
Oneissaidtohedgeariskwhentheactiontakentoreduceone’sexposuretoalossalsocausesonetogiveupthepossibilityofagain.
Insuring:
Insuringmeanspayingapremiumtoeliminatetheriskoflossandretainthepotentialforgain.
Diversifying:
Diversifyingmeansholdingsimilaramountsofmanyriskyassetsinsteadofconcentratingallofyourinvestmentinonlyone.Diversificationtherebylimitsyourexposuretotheriskofanysingleasset.
2.Outlinethestepsintherisk-managementprocess.
Answer:
Theriskmanagementprocesscanbebrokendownintofivesteps:
1.Riskidentification
2.Riskassessment
3.Selectionofriskmanagementtechniques
4.Implementation
5.Review
3.
Thinkofabookstore.Whatrisksissuchabusinessexposedto,andwhobearsthem?
4.
5.
Answer:
Majorrisks:
Riskthatinventorywillnotarriveontime
Riskthatemployeeswillbelateorabsent
Riskthatcomputers/registerswillbreakdown
Riskofnewcompetitioninthearea(especially-the“superstores”)
Riskthatdistributors'priceswillincreasedramatically
Theserisksarebornebyshareholders,owners,employees,creditors,customers,suppliers.
6.Explainwhythesale/purchaseofahouseissimilartoaforwardcontractinnature.
Answer:
Bothpartieseliminatetheuncertaintyassociatedwithpricevolatilityinthehousingmarketduringthemonthsofsettlingthecontractbetweenthem.Eventhoughthetransferofownershipforthehousewon'thappenformanymonths,thebuyerandsellerofahousecancontractuallysettleonatransactionpriceforthehouse.
7.Explainthedifferencebetweeninsuringandhedging.
Answer:
Whenyouhedge,youeliminatetheriskoflossbygivingupthepotentialforgain.However,whenyouinsure,youpayapremiumtoeliminatetheriskoflossandretainthepotentialforgain.
8.Discussthetwofactorslimitingtheefficientallocationofrisks.
Answer:
Transactionscostsandincentiveproblemsarethetwokeyfactorslimitingtheefficientallocationofrisks.Transactionscostsincludethecostsofestablishingandrunninginstitutionssuchasinsurancecompaniesorsecuritiesexchangesandthecostsofwritingandenforcingcontracts.
Moralhazardandadverseselectionareexamplesofincentiveproblems,whichstandinthewayofthedevelopmentofinstitutionsforefficientrisksharing.Moralhazardexistswhenhavinginsuranceagainstsomeriskcausestheinsuredpartytotakegreaterriskortotakelesscareinpreventingtheeventthatgivesrisetotheloss.
Theproblemwithadverseselectionrelatestothefactthatthosewhopurchaseinsuranceagainstriskaremorelikelythanthegeneralpopulationtobeatrisk.
9.Inthecaseofinsuringaship,explainhowthemoralhazardproblemcanlead