Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

FINC 340: INVESTMENTSUNIT #3A WEEKLY QUIZ ANSWER SHEETDIRECTIONS:

/in /by

FINC 340: INVESTMENTSUNIT #3A WEEKLY QUIZ ANSWER SHEETDIRECTIONS: Here is the Unit #3 Weekly Quiz Answer Sheet that you should submit to your Unit #3 HomeworkAssignment Folder.Please submit your Unit #3 Quiz Answer Sheet in MS Word format with the following file name:LastNameFirstInitial_Unit 03_QuizAnswerSheet.docx. For example, if you name is John Smith, the file name ofyour Answer Sheet should be SmithJ_Unit03_QuizAnswerSheet.docx.If you have any questions or comments, please do not hesitate to contact me.NAME: _____________________________________QuestionNumberQuestion1What does beta represent?A.Indiviudal company risk against market riskB.Systematic risk for the companyC.Unsystematic risk of the companyD.Varabiity of returns for the company2The purpose of stock valuation is to:A.To set a fair market value (FMV) for a given common stockB.To determine whether the vlaue of a common stock is fairly represented by its marketpriceC.Of limited value since the efficient market hypothesis proves that all common stock isalways fairly pricedD.More than one of the above1
Background image of page 1
View the Answer
3What two conditions are necessary to use the constant growth model:1.The price must increase over time2.The investors required rate of return must be known3.Constant growth is necessary4.Any growth is necessary5.The required rate of return must exceed growthThe two conditions necessary for the constant growth model are:A.1 and 2B.2 and 3C.3 and 4D.3 and 54The required rate of return is intended to provide:A.Compensation for expected inflationB.A premium for risk assumedC.A minimum real rate of returnD.All of the above5What is the value of a stock which has a current divident (D0) of $1.50 and is growing at the rateof 7%. The investor’s required rate of return is 12%A.$26.75B.$30.00C.$32.10D.None of the above6In order for any dividend valuation model to reflect a valid stock price for a companyA.The dividend growth rate must remain constantB.The company must pay dividendsC.The required rate of return (discount rate) must remain constantD.More than one of the above7The risk of holding stocks is measured by the:A.Likelihood of price jumpsB.Volaliity and investment time horizonC.Standard deviation of the expected return and betaD.Macro-economic variable2
Background image of page 2
Show

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"