1. Are the following statements True or False 11 Otherwise write down You purchase a share of Dell as for SICO. One year later 53. you sell the stock 10 Yer bolding periode decimal points, is 10.00%. 1 b) The Dow Jones Industrial Averace is calculated using price wer-priced shares more weight in determining performance of en If the statement is correct, write down 120 marks) year later, after receiving a dividend ng period return, rounded up to two HRR - - - 12.5 marks) wight in determining performance of the index sing price weighted average which (2.5 marks) des accrued interest if the c) The actual sale price that have bays for the bond includes accrued inte bond is purchased between coupon payments. [2.5 marks) Suppose a convertible bond is issued at ar value of $1.000 and is convertible into shares of a firm's stock. Further, suppose the bond is zero coupon and interest rate If current stock price is $20 per share, the option to convert the bond is profitable. [2.5 marks) e) White Wedding Corporation will pay a $3 per share dividend next year. The company pledges to increase its dividend by 4 percent per year, indefinitely. If you require a 10 percent return on your investment, the price of the stock today is $30. [2.5 marks) Since investors are compensated for holding risk, two securities with the same van ance should have the same expected return. 12.5 marks) g) A fixed-income security can pay variable income stream to owner of the security. 12.5 marks] h) Selling a futures contract provides insurance to someone who holds the underlying asset, because it guarantees that the asset can always be sold at or higher than the futures price. [2.5 marks]