6,7,11,13

Investments with S&P bind-in card

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Exam # 2 B FIN 340, Fall 07 Student: ___________________________________________________________________________ 1. The values of beta coefficients of securities are ___________. A. usually positive, but are not restricted in any particular way B. always positive C. always negative D. always between positive 1 and negative 1 2. According to the CAPM, the risk premium an investor expects to receive on any stock or portfolio is ________________. A. directly related to the beta of the stock B. directly related to the risk aversion of the particular investor C. inversely related to the risk aversion of the particular investor D. inversely related to the alpha of the stock 3. A big increase in government spending is an example of __________. A. an unsurprising shock B. none of the above C. a supply shock D. a demand shock 4. Attempting to forecast future earnings and dividends is consistent with which of the following approaches to securities analysis? A. technical analysis B. Both technical analysis and fundamental analysis C. None of the above D. fundamental analysis Professor Milligan Exam #2 B
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5. An underpriced stock provides an expected return which is _______________ the required return based on the capital asset pricing model (CAPM). A. equal to B. greater than C. less than D. greater than or equal to 6. What is the expected return on the market? A. none of the above B. 15% C. 5% D. 10% 7. Which of the following is not one of the three key financial statements available to investors in publicly traded firms? A. statement of operating earnings B. balance sheet C. statement of cash flows D. income statement 8. Risk that can be eliminated through diversification is called ______ risk. A. firm-specific B. unique C. all of the above D. diversifiable Professor Milligan Exam #2 B
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9. An increase in the price of imported oil is an example of __________. A. none of the above B. a supply shock C. an unsurprising shock D. a demand shock 10. Standard deviation is a measure of ____________. A. total risk B. relative non-systematic risk C. relative business risk D. relative systematic risk 11. The analysis of the determinants of firm value is called ______________. A. fundamental analysis B. technical analysis C. None of the above D. momentum analysis 12. Assume the U.S. government was to decide to increase its budget deficit. This will cause __________ to increase. A. the output of the economy B. neither a nor b C. both a and b D. interest rates 13. A measure of the riskiness of an asset held in isolation is _____________. A. covariance
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6,7,11,13 - Exam # 2 FIN 340, Fall 07 B Student: _ 1. The...

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