15. Astro Malaysia uploaded their balance sheet and income statement on their website for the public to access. Which type of EMH is this? 1. Weak form EMH 2. Semi-strong EMH 3. Strong Form EMH 4. Very-strong EMH 16. Peter bought stock in Apple after realizing a good trend for the last decade in the growth of Apple stock prices. Which type of EMH is this? 1. Weak form EMH 2. Semi-strong EMH 3. Strong Form EMH 4. Very-strong EMH 17. Which of the following statement is False 1. Weak form EMH is used in Fundamental analysis 2. Very-strong EMH is used in Economic Analysis 3. Semi-strong EMH is used in technical Analysis 4. All the above are FALSE 18. Assuming that an investor Buys and Holds a security for a long period of time. Which kind of investment management is this? 1. Active Investment Management 2. Passive Investment Management 19. Assume that the Dow Jones Industrial Average has the following stocks and their respective prices at a certain time. Answer all the questions 19, 20 and 21. 19. Assume, there is no stock split, what is the current value of the Index? * Dow Jones Industrial Average - Stock Prices before the split A 30 B 10 C 32 D 28 E 25 20. Assume, there is no stock split still, what is the current Divisor of the Index? 21. What is the new value of the index if Stock C gets a 4 for 1 stock split and Stock E gets a 5 for 1 stock split? * 22. Assume that the FTSE Bursa Malaysia KLCI has the following stocks and their respective prices at the beginning of a trading period. Answer the questions 22, 23 and 24. 22. What is the Capitalisation of the Index at opening given the details in the table below? Stock Opening Share Price Number of Shares A 6 20 Million B 8 17 Million C C 2 32 MIllion D 4 20 MIllion 23. Assume if closing share price is 7 for stock A, 10 for stock B, 5 for stock C and 2 for stock D. Calculate the closing capitalization of the index if company D does a 2 for 1 stock split during the trading period and company B pays 3 million in share dividends during the same trading period. * 24. Calculate the change in the value of the index if the base value of the index is 100. 25. Assume Affin Bank earned a 5RM a share last year and paid a dividend of 8RM per share at the end of the year. The Price of the Share at the end of the Year is estimated at RM30. Determine the value of the share at the end of the Year if the required rate of return is 10%? Use the Dividend Discount Model to solve this question. * 26. An investor plans to hold Alibaba shares for 2 years. The company expects to pay its shareholders a $2 per share over the next 2 years. Investors projected that the Alibaba shares will close at the end of that time period at $27 per share. Given the rate of return of 20%, what is the value of the Alibaba shares at the end of the two year period? Use the Dividend Discount Model to solve this question. 27. Maybank shares recently paid a dividend of RM5. The dividend is expected to grow at 10% per year infinite. What is the value of the stock if our required rate of return on this shares is 15%? * 28. Assume two companies 7 Eleven and Mynews located in the same community. Mynews is bigger in terms of sales and profits. Both companies are similar in management, financial structure however see the summary below. Use the table to answer the questions 28, 29 and 30. 28. What is the Earnings per share for 7 Eleven? * 7 Eleven Mynews Profits 30000 32000 Number of Shares (S) 5000 5000 Current Share Price (P) 36 32 29. What is the Price Earnings Ratio for Mynews? * 30. Which of the two companies' share should be sold by an investor and briefly explain why? *