3/11/23, 12:02 PM Assessment 1: Attempt review
Started on Monday, 27 February 2023, 2:33 PM
State Finished
Completed on Saturday, 11 March 2023, 11:59 AM
Time taken 11 days 21 hours
Marks 19.00/20.00
Grade 95.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
a. An asset’s value is equal to the future value of its expected cash flows.
b. An asset’s value is equal the present value of past cash flows.
c. An asset’s value is equal to the present value of the sum of all its expected future cash flows.
Your answer is correct.
The correct answer is:
An asset’s value is equal to the present value of the sum of all its expected future cash flows.
Question 2
Correct
Mark 1.00 out of 1.00
Financial analyst Joel Marawa, CFA, is evaluating Sugar Inc, which farms and processes sugar for national distribution. Which one of the
following steps is Marawa most likely to take as part of the top-down valuation process?
a. Understand the business.
b. Calculate market volatility.
c. Perform technical analysis.
Your answer is correct.
The correct answer is:
Understand the business.
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, 3/11/23, 12:02 PM Assessment 1: Attempt review
Question 3
Correct
Mark 1.00 out of 1.00
Use the following information to answer questions 3 to 4.
Price relationship Alpha
1. V=P (i) Expected return > required rate of return
2. V>P (ii) Expected return < required rate of return
3. V<P (iii) Expected return = required rate of return
V=Intrinsic value
P=Market price
An asset is mispriced when? (Use column one)
a. 1 and 2
b. 1, 2 and 3
c. 2 and 3
Your answer is correct.
The correct answer is:
2 and 3
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