Question 2 If the covariance between security A and security B is +0.0032. the correlation coefficient between them CANNOT be A} 0.2187 ~' 9 B] 04138 C) 0.3358 D} 0.7149 Question 3 We use to measure the the systematic risk of an investment. A} standard deviation B] expected return C) beta coefficient D} variance Question 4 In an indirect quote, the foreign currency is the OA) terms currency O B) reserve currency O c) commodity currency O D) irrelevant Question 5 You observe the FX quote as below Yesterday AUD/USD = 0.78 Today AUD/USD = 0.79 The value of US dollar * A) increased O B) depends on where you observe these rates O C) is unchanged # O D) decreasedQuestion 6 Following are the returns of ABC Ltd shares between 2013 and 2016. Calculate the expected return. R t Year e urn (96} 2013 2014 2015 14 2016 -5 Hint: if your answer is 20.25%, input 20.25. No marks will be given if inputting 0.2025 or 20.25% or 20.25 per cent. Answer: (our Question 7 Jack has invested $300000 in securities A. B and C. Their weights and betas are listed in the below table. What is the portfolio beta? Security Eight Beta A 40 0.4 B 40 2.0 C ? 1.7 Answer: 0.98 ~/ Question 8 Calculate the standard deviation of returns of ABC Ltd., using the below data between 2014 and 2016. Return 'r' ear (96} 2014 6 2015 5 2016 40 Hint: if your answer is 8.91%, input 8.91. No marks will be given if inputting 0.0891 or 8.91% or 8.91 per cent. Answer: 24.02 J Question 9 If USD/AUD is 1.0949 and USD/JPY is 115.29, the exchange rate between the Australian Dollar and the Japanese Yen (AUD/JPY) must be Hint: write up to 2 decimal points. If your answer is 110.115, input 110.12. Answer: 105.30Answer: 105.30 V Question 10 An Aussie importer will pay CAD1,000,000 to its Canadian supplier. Its bank in Sydney provides quotes AUD/CAD = 0.9755-65. He has to pay AUD to his bank. x O A) 975,500 # O B) 1,025,115.33 O C) 976,500 O D) 1,024,065.54