70.2K
Verified Solution
Link Copied!
please don't use ai, I will detect it. if it is proven to be used, I will downvote it.
6. The market price of a share of common stock is determined by:
- the board of directors of the firm.
- the stock exchange on which the stock is listed.
- the president of the company.
- individuals buying and selling the stock.
7. In 3 years you are to receive $5,000. If the interest rate were to suddenly increase, the present value of that future amount to you would
- fall.
- rise.
- remain unchanged.
- cannot be determined without more information.
9. Assume that the interest rate is greater than zero. Which of the following cash-inflow streams should you prefer?
Year1 Year2 Year3 Year4
- $400 $300 $200 $100
- $100 $200 $300 $400
- $250 $250 $250 $250
- Any of the above, since they each sum to $1,000.
9. This type of risk is avoidable through proper diversification.
- portfolio risk
- systematic risk
- unsystematic risk
- total risk
10. An "aggressive" common stock would have a "beta"
- equal to zero.
- greater than one.
- equal to one.
- less than one.
Answer & Explanation
Solved by verified expert
