Fin 4305 test Study guides, Class notes & Summaries

FIN 4305 (Investments) - Test HW 1 with Answers - June 2022 (100 out of 100 points) Questions 1. The price an individual investor will pay to purchase a stock in the OTC market is the bid price. 2. Rights offerings help avoid dilution of ownership for existing common shareholders. 3. One goal of secondary markets is to raise cash for firms. 4. Wilson just placed an order with his broker to purchase 500 of GE's outstanding shares. This purchase will occur in which one of the following m...

FIN 4305 (Investments) – Test HW 2 with Answers – June 2022 (100 out of 100 Points) Questions 1. The divisor used in a price-weighted index will increase whenever a stock within the index undergoes a reverse stock split. 2. Number of shares Closing Prices Company outstanding Year T Year T + 1 W 1,500 $22.00 $18.00 X 2,500 35.00 25.00 Y 2,000 10.00 15.00 Z 3,000 50.00 48.00 Find the percentage change of a value-weighted index consisting of these four stocks from years T to T+1. ...

FIN 4305 (Investments) – Test HW3 with Answers – June 2022 (100 out of 100 points) Questions 1. Use the following information to answer the next three questions. You are evaluating two mutually exclusive projects, A and B. Project A has an initial outlay of 389,000 and is expected to produce cash flows of 242,000 in year one and 294,000 in year 2. Project B has an initial outflow of 199,000 and is expected to generate 131,500 in year one and 172,500 two years from today. The opportun...

Test 3 Fin 4305

FIN 4305 (Investments) - Test HW 3 with Answers - June 2022 (100 out of 1

FIN 4305 (Investments) - Test HW 3 with Answers - June 2022 (100 out of 100 p

FIN 4305 (Investments) – Test HW 4 with Answers – June 2022 (100 out of 100 points) Questions 1. Which of the following well-diversified portfolios would all rational investors prefer? Portfolio E(r) σ A .22 .26 B .15 .17 2. A friend has some reliable information that a certain stock is going to rise from $60 to $65 per share over the next year. The return on the S&P 500 is expected to be 10% and the 90-day T-bill rate is 2%. If the stock's beta is .9, should you purchase the stock...