1. 
   

1. Define unsystematic risk

2. Name and explain the two sources of unsystematic risk

3. Define systematic risk

4. Name and explain two sources of systematic risk   

2. Beta coefficient

1. Explain the concept of the beta coefficient   

2. Suppose that the stock for Alphabet Inc, an american Technology conglomerate, had a beta coefficient of 1.3. If the return on as a whole will be 10% over the next year, what will be the return on investment over the next year? (assuming the beta coefficient for Google stock does not change).

1. What is a balance sheet?

2. What is an Income statement?

3. What is the statement of cash flows?

1. List and explain the two types of stock.

2. What is a cash dividend?

3. Suppose Netflix Inc. declares a $2 per share cash dividend with a distribution date of May 15th, 2019. The Netflix board of Directors declares that the date of record is Thursday, April 18th, 2019. When must the ex. Dividend date

4. If the closing price of Netflix stock is $350 per share on the day before the ex dividend date, what will the price per share of Netflix stock be at the maximum open on the ex dividend date (assuming no other important dates occur that would impact Netflix’s business and that the cash dividend is $2 per share)?

5. You have done an extensive analysis of the stock of the Boeing Company, an American multinational corporation that designs, manufactures, and sells airplanes, rotocrafts, rockets, satellites, and missiles worldwide. In the course of your analysis you determined that Boeing stock is currently trading at a price to earnings (i.e. P/E) ratio of about 16, with a minimum P/E ratio of 12 and a maximum P/E ratio of 21. Currently the average P/E ratio for stocks in the aircraft manufacturing industry is 15, while the average P/E ratio for all of the stocks in the S&P 500 is 17. What do you conclude from this data?

6. Bonds

• Define principle bonds

• Define Maturity date

• Company holding your bond defaults