FIN 301 Online Assignments 2-10 Exam Questions and Answers
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Course
FIN 301
Institution
FIN 301
According to the efficient market hypothesis, using technical analysis to forecast future stock prices is - Answer-Useless
Believers of behavioral finance principles do believe that - Answer-Markets are not always efficient
According to the Principles of Finance, risk aversion means: - Answer...
FIN 301 Online Assignments 2-10 Exam
Questions and Answers
According to the efficient market hypothesis, using technical analysis to forecast future
stock prices is - Answer-Useless
Believers of behavioral finance principles do believe that - Answer-Markets are not
always efficient
According to the Principles of Finance, risk aversion means: - Answer-Investors takes
small risks, but do not avoid risk at all cost
True or False: According to the principles of finance, investors prefer more risk to less
risk. - Answer-False
When Professor X started investing with a mutual fund, he had to pay a front-end load
of 5% of the money he was investing. What is this front-end load of 5% an example of?
- Answer-Transaction Costs
According to frank Russell's model of investor emotion through market cycles, investor
emotion in 2007 before the financial crisis would be best described as: - Answer-
Euphoria
True or False: In order to achieve the highest level of return for the amount of risk we
can take on, it is very important to not diversify our investments into different asset
classes, and to only invest in small-cap bio-tech stocks. - Answer-False
Beta is used in the capital asset model primarily as a measure of - Answer-Risk
What is the correlation between the risk of an investment and its expected return? -
Answer-Positive
Given the following information, which stock has the highest return?
Stock B: Current Price: $630 - Purchase Price: $545 - Dividends Paid: $20 - Answer-
Stock A
Alcoa announced in a press release that it will acquire Kaiser Aluminum for $90 per
share. If the theory of efficient capital markets is correct, what happens to Kaiser
Aluminum's stock? - Answer-Immediately trades up to $90
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