Tentamen (uitwerkingen)

FIN 301 FINAL EXAM 2024/2025 VERIFIED QUESTIONS AND ANSWERS GRADED A+(SOLVED)

0 keer verkocht

Vak
FIN 301

Instelling
FIN 301

[Meer zien]

Voorbeeld 3 van de 25 pagina's

Bekijk voorbeeld

Geupload op 14 oktober 2024
Aantal pagina's 25
Geschreven in 2024/2025
Type Tentamen (uitwerkingen)
Bevat Vragen en antwoorden

fin 301 final exam verified questions
in capm the expected return on a stock is directl

Instelling FIN 301
Vak FIN 301

Volgen

LUCYSTUDY Lid sinds 1 jaar 52 documenten verkocht

$15.79

In winkelwagen

Opslaan

100% tevredenheidsgarantie
Direct beschikbaar na je betaling
Lees online óf als PDF
Geen vaste maandelijkse kosten

FIN 301 FINAL EXAM 2025/2024

FIN 301 FINAL EXAM 2024/2025 VERIFIED
QUESTIONS AND ANSWERS GRADED
A+(SOLVED)

In CAPM, the expected return on a stock is directly related to its _____?

A. Alpha

B. Beta

C. Interest Rate

D. WACC

E. All of the above

B

Which of the following is true about bonds?

A. The longer the maturity of the bond, the higher the interest rate risk

B. There is a positive relationship between market interest rate movements and
bond prices

C. The lower the default risk on the bond, the higher the yield of the bond

D. A decrease in market interest rate will decrease bond prices

E. Bonds prices are not affected by prepayment risk

A

,FIN 301 FINAL EXAM 2025/2024

What is the tax-equivalent yield of the following municipal bond? Price: $1,000
Coupon Rate: 7.0% Federal tax rate: 30% Maturity: 15 years

A. 5.4%

B. 9.1%

C. 10.0%

D. 7.0%

E. 23.1%

C

If there are two non-callable $1,000 bonds that pay semi-annual interest, one with a
15-year maturity and the other with a 30-year maturity and both with a coupon rate
of 8%, what will happen to their values if market interest rate rises to 12%?

A. The value of the 15-year bond will be $47.93 higher than the 30-year bond

B. The value of the 30-year bond will be $47.93 higher than the 15-year bond

C. The value of the 15-year bond will be $49.77 higher than the 30-year bond

D. The value of the 30-year bond will be $49.77 higher than the 15-year bond

E. Their values will be the same because their coupon rates are the same

A

Which of the following statements is false:

, FIN 301 FINAL EXAM 2025/2024

A. Poor profits for a firm can negatively affect its stock price

B. A firm's profits and market value have a direct relationship

C. A stock's value depends most on interest rates, profits, and risks

D. The market value of a company is total market value of its assets

E. A public company's market value is calculated by multiplying the shares
outstanding by its current market stock price

D

If you bought a stock for $50 and sold it for $60 after a year, you also received a
quarterly dividend of $2.00 throughout the year. What was the rate of return you
received over the year?

A. 24.0%

B. 30.0%

C. 36.0%

D. 42.0%

E. 48.0%

C

Shawn currently owns Stock Z and wants to diversify his portfolio to reduce his
exposure to unsystematic risk. Given the correlation of Stock Z with the following
stocks, which stock should he own along with Stock Z? A. Stock A:
Correlation=1.0

B. Stock B: Correlation=0.10

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, creditcard of je Stuvia-tegoed en je bent klaar. Geen abonnement nodig.

Direct to-the-point

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.