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1 - Jessie bought 5 0 0 shares of Ford on january 1 st and enrolled in the DRIP program. Ford paid a dividend of

1- Jessie bought 500 shares of Ford on january 1st and enrolled in the DRIP program. Ford paid a dividend of $1.00 per share at the end of that year. Assuming Jessie holds the stock for two additional years, how many shares will jessie own at the end of the third year if Ford stock trades at an average price of $6.00?
a-794
b-800
c-945
d-700
2-You buy and hold 500 shares of Ford stock on January 1,2019. Ford pays a dividend of .50 per share. You decide to reinvest the dividends in a DRIP. At the end of year one, Ford stock trades at $5.00 per share. How many shares of Ford can you buy with the dividend?
a-25
b-50
c-75
d-100
3-An analysis is reviewing two stocks in a small portfolio that include Kellogg Company ( the cereal company) and Exxon
(the oil company). After completing a regression analysis the correlation is computed at 0.02. This means:
a- these two stocks are positively correlated
b-these two stocks are negatively correlated and will move opposite each other
c-these two stocks have no correlation so there is no pattern that they move together or against each other
d-none of these
4-Lenny after studying the income statement & cash flow statement of four technology companies, decides that his best option for the long term is T Mobile stock. What type of analysis did Lenny engage in?
a-Fundamental analysis
b-technical analysis
c-behavioral analysis
d-none of these
5-Henry worked in a bank for over 10 years and, because of his experience, he only likes to invest in bank stocks. 90% of Henry's portfolio is in the stocks Citigroup, JP Morgan Chase, GoldmanSachs,and Barclays Bank, while 10% is in technology stocks, mostly Apple, What kind of risk is Henry exposed to?
a-Idiosyncratic risk
b-systematic risk
c-technical risk
d-both idiosyncratic risk and systematic risk
6-AT&T reported days to cover is 4.1 this means:
a- short sellers believe AT&T stock will decrease in price
b-short sellers believe AT&T stock will increase in price
c-the average number of days a person buys and holds AT&T stock is 4.1 days
d-none of these
7-The fact that retail industry stocks (stocks like Macy's, The Gap, Footlocker,etc) were heavily sold in recent months due to fears that Amazon would dominate with online ordering would expose investors in stocks like Macy's, Gap, and Footlocker to what type of risk?
a-behaviorist risk
b-market risk
c-Idiosyncratic risk
d-technical risk
8-Use of the dividend discount model (DDM) AND THE DISCOUNTED CASH FLOW MODEL (DCF) are examples of which type of stock valuation?
a-relative
b-absolute
c-comparative analysis
d-Intrinsic Value
9-Nancy is trying to create a portfolio of two stocks that would move with the overall market. The four stocks and their correponding Betas are as follow:
Apple Beta : 1.17
AT&T: .67
Salesforce: 1.35
Con Edison: .24
move closely with the overall market?
a-portfolio of Salesforce & AT&T
B-Portfolio of AT&T and Con Edison
c-portfolio of Salesforce & Con Edison
d-portfolio of Salesforce and Apple

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