Finance 401: Investments
Provide the best answer for each multiple choice or true/false question. On the scantron,
answer A for true, B for false. Each question, unless otherwise noted is worth 3 points.
1) A portfolio c
35. Which of the following is a legitimate reason the valuation of common stock is generally harder than the
valuation of bonds?
I. Future cash flows on stocks are not known in advance.
II. Common stocks don't have a maturity date.
III. Common stock valua
Sample Final Exam
Which of the following are advantages of owning bonds?
II. higher long-term returns than equity holdings
III. current income
IV. relatively low risk
I and II only
I, III and IV
This exam is open book and is to be your individual work ONLY. You are not allowed to consult
with anyone in answering the questions.
Please read the questions carefully, there may be a little more than might be obvious at first
reading. Please make sure