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Quiz_1_spring_2010_in_doc_format

# Quiz_1_spring_2010_in_doc_format - Group 1 1 correct tu rn...

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Group  1 1. Which of the following concerning the relationship between risk and return is  correct?

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tu rn s. E. Ri sk  a n re tu rn  ar n ot  re lat e d.
Answer: C 2. Which of the following concerning the relationship between risk and return is  correct?

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d n ot  n e e to  b co m p e ns at e fo ta ki n o
Answer: B   Group  2 3. Calculate the stock return from the following  information. Beginning Price: \$50 Ending Price: \$60 Dividend: \$5

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A. 3 0 % B. 1 5 % C. 2 0 % D. 2 5 % E. 5 0 %
Answer: A 4. Calculate the stock return from the following  information. Beginning Price: \$20 Ending Price: \$28 Dividend: \$1

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4 5 % 4 0 % 9 % 2 0 % 2 8 %
Group  3 5. Which type of investment has the least amount of risk?  6.   Which type of investment has the greatest amount of return?    Group

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7. Which of the following is part of the treasurer's  function?
A. A u dit in th co m p a ny ’s  fin a nc ial s B. P u bli sh

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Answer: C 8. Which of the following is part of the controller’s  function?
A. D et er mi ni n th fe as ibi lit of  va ri o us  pr oj ec ts

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Answer: E   Group  5 9. According to the Theory of Efficient Capital Markets:
ve st or ca e as ily  b e at  th m ar ke t Answer: B   10.   According to the Theory of Efficient Capital Markets:

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A. Stock prices do not reflect all publicly available information B. Stock prices take a long time to capture new information C. Stock prices react instantaneously to new information D. Stock prices react positively to all new information E. Investors can easily beat the market Answer: C   Group  6 11 . In the short term, stock prices are  driven by:
A. S u p pl a n d e m a n d B. C or p or at e ar

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Answer: A 12 . In the long term, stock prices are  driven by:
A. S h or t- te r va lu of  th co m p a ny B. S u p pl

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