Finance

1) in simplest terms a call is

a- an option to sell a stock

B an option to buy a stock

C a or b can both be correct

D neither is correct.

2) Using the dogs of the dow theory an investor would

A buy al 30 of the stocks of the dow jones index

B buy the lowest 5 yielding stocks of the dow jones

C buy the 5 higest yielding of the dow jones stocks.

D at this time buy only apple

3) Dividend yield is calculated by

A dividing the stock price by the dividend.

B dividing the dividen by the P/E ratio

C dividing the P/E by the price of the stock.

D dividing the divivdend by the stock price.

4) Payback is a better measure than discounted payback because

a it takes the time value of money into consideration

b it is easier to calculate

c it is not better as it does not take the time value of money into consideration

d b and c are both correct.