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A share is bought for $12 and the price in one year's time is forecast using 3 possible outcomes: $13 with probability 25%, $15 with
A share is bought for $12 and the price in one year's time is forecast using 3 possible outcomes: $13 with probability 25%, $15 with probability 50%, and an unknown third value. This share has an expected return of 10%. What is the unknown third value? Select one: oa, $10.25 o b. $9.80 O c. $11.00 O d. $9.00 Which form(s) of the Efficient Market Hypothesis is consistent with the statement, "all information about past prices is reflected in current market prices"? Select one: O a. Semi-strong form. O b. All forms oc. Strong form. od. Weak form. How does an active share market in securities affect corporate funding costs? Select one: a. Increases funding costs due to compliance costs. b. Lowers funding costs because investors value more marketable securities. O c. Increases funding costs due to listing fees. od. Lowers funding costs because intermediaries are no longer involved. O Gi Gi has an opportunity to invest $24,000 today at a nominal interest rate of 7.8% per annum, compounding weekly. If she wants this to grow to $30,000, how long does she need to hold her investment? Select one: O a. 150.7 weeks O b. 142.5 weeks O c. 149.6 weeks O d. 148.9 weeks Charlotte is considering buying some preference shares in Georges River Aquaculture Limited. Charlotte thinks that a suitable value for the required rate of return for these shares is 8% per annum. The company will pay an annual dividend at the end of each year, commencing at the end of Year 3, as it will be three years before any fish can be sold. The dividend will be $2.50 per share, and is forecast to be paid forever. Based on this information, one preference share in Georges River Aquaculture Limited worth approximately Select one: a. $24.89 O b. $27.15 c. $26.79 o O d. $25.42
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