100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Wall Street Exam Practice Questions and Answers 100% Pass $12.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. Wall Street
  4.  
  5. Wall Street

Exam (elaborations)

Wall Street Exam Practice Questions and Answers 100% Pass
 6 views  0 purchase
  • Course
  • Wall Street
  • Institution
  • Wall Street

Wall Street Exam Practice Questions and Answers 100% Pass Last year, T-bills returned 2% while your investment in large-company stocks earned an average of 5%. which one of the following terms refers to the difference between these two rates of return? - Risk Premium Standard deviation is a me...

[Show more]

Preview 2 out of 9  pages

Document information

  • December 5, 2024
  • 9
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • wall street exam practice questions and answers 10

Written for

  • Wall Street
  • Wall Street

Seller

avatar-seller
KatelynWhitman

Reviews received

Content preview

Wall Street Exam Practice Questions and Answers
100% Pass

Last year, T-bills returned 2% while your investment in large-company stocks earned an average of 5%.

which one of the following terms refers to the difference between these two rates of return? - ✔✔Risk

Premium


Standard deviation is a measure of which one of the following? - ✔✔Volatility


Assume that the market prices of the securities that trade in a particular market fairly reflect the available

information related to those securities. Which one of the following terms best defines that market? -

✔✔Efficient capital market


Stacy purchased a stock last year and sold it today for $3 a share more than her purchase price. She

received total of $0.75 in dividends. Which one of the following statements is correct in relation to this

investment? - ✔✔The capital gains yield is positive


Efficient financial markets fluctuate continuously because: - ✔✔The markets are continually reacting to

new information


Individuals who continually monitor the financial markets seeking mispriced securities: - ✔✔make the

markets increasingly more efficient


What is the model called that determines the present value of a stock based on its next annual dividend,

the dividend growth rate, and applicable discount rate? - ✔✔Dividend growth


Which one of the following is the rate at which a stock's price is expected to appreciate? - ✔✔Capital

gains yield




Page 1/9
Crafted for Academic Insight by KatelynWhitman. All rights reserved © 2025

, You cannot attend the shareholder's meeting for Alpha United so you authorize another shareholder to

vote on your behalf. What is the granting of this authority called? - ✔✔Voting by proxy


An agent who maintains an inventory from which he or she buys and sells securities is called a: -

✔✔Dealer


National Trucking has paid an annual dividend of $1.00 per share on its common stock for the past fifteen

years and is expected to continue paying a dollar a share long into the future. Given this, on share of the

firm's stock is: - ✔✔Priced the same as $1 perpetuity.


The dividend growth model:


I. assumes that dividend increase at a constant rate forever.


II. can be used to compute a stock price at any point in time.


III. can be used to value zero-growth stocks.


IV. requires the growth rate to be less than the required return. - ✔✔I, II, III, and IV


An increase in which of the following will increase the current value of a stock according to the dividend

growth model?


I. dividend amount


II. number of future dividends, provided the current number is less than infinite.


III. discount rate.


IV. dividend growth rate. - ✔✔I, II, and IV only


which one of the following is an underlying assumption of the dividend growth model? - ✔✔A stock's

value is equal to the discounted present value of the future cash flows which it generates.




Page 2/9
Crafted for Academic Insight by KatelynWhitman. All rights reserved © 2025

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller KatelynWhitman. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

56326 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
Add to cart
Added