1.Any change in beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely have an impact on the stock's price.

True

False

2.

Perpetuity is a kind of annuity which has infinite period of payments. If we assume a perpetuity pays $5 per year forever. What would the perpetuity be worth if the required rate of return is 5%?

		$5
		$100
		$500
		$1,000

3.

For a supernormal dividend growth stock, the capital gain yield of the stock is equal to the dividend growth rate g during the supernormal growth period and the subsequent normal growth period.

True

False

4.

CCC-rated bond is a high risk, high yield debt instrument.

True

False