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hello would lke to get help wth these questons please also nclude the explanatons 1- Suppose that a company that has a 10.000 TL amount

hello would lke to get help wth these questons

please also nclude the explanatons

1- Suppose that a company that has a 10.000 TL amount of capital (par value is 1 TL per share) distributed 10 TL dividends per share last year end. The discount rate for this particular company's shares is 14% and the dividend growth rate is estimated as 3%. What is the approximate value of the company?

a)936.364 TL

b)909.091 TL

c)714.286 TL

d)735.714 TL

e)Other:

2- An investor expects to receive 5 TL of dividend income from an equity investment and will probably sell that equity after 1 year at a price of 40 TL. The expected rate of return for this investor is 25%. What should be the price that the investor would pay for the equity right now?

a)28

b)36

c)45

d)56

e)Other:

3- How much should an investor pay for a preferred stock that offers 10,5 TL of dividends forever if the investor expects 6% return?

a)63

b)81

c)111

d)175

e)Other:

4- The standard deviations of Stock (K) and Stock (L) are 10% and 40%, respectively. The correlation between these two stocks is 54%. what would be the APPROXIMATE standard deviation of a portfolio if we invest 40% for Stock K and 60% for Stock L?

a)18%

b)26%

c)32%

d)48%

e)Other:

5- A company will pay 4 TL dividends per share for the first two years. Right afterwards, the dividend growth rate will be 3% for the next 2 years. After that period, the dividends per share will be 2 TL forever. Suppose that the discount rate is 10%. What is the theoretical value of the share today?

a)26,60 TL

b)25,35 TL

c)25,65 TL

d)25,09 TL

e)Other:

6- Suppose that an investor has $100,000 to invest. The investor has chosen to construct a portfolio containing 25% of a risk-free treasury bill (5% rate of return) and 75% of risky assets. The risky portion of the complete portfolio is composed of 50% stock (10% expected rate of return and 25% standard deviation) and 50% bond (6% rate of return and 12% standard deviation) with zero covariance. What is the expected rate of return and standard deviation of the complete portfolio.

a)7,25%, 10,40%

b)7,50%, 10,60%

c)7,25%, 10,00%

d)7,75%, 10,40%

e)Other:

7- Suppose that the initial investment budget is $300,000 but the investor borrows additional funds for $120,000 from a risk-free rate of 5% in order to invest the total amount in a risky asset. The risky asset provides an expected return of 12% per year with 82% probability. What would be the expected return and the risk of the portfolio?

a)14,80%, 27,00%

b)14,80%, 25,20%

c)15,30%, 26,50%

d)14,40%, 27,00%

e)Other:

8- In which case portfolio risk is simply a squared weighted average of the risks of the two assets in the portfolio?

a)When the weight of one of the assets is negative.

b)When the two assets are independent.

c)When there is a perfect negative correlation between the assets.

d)When the assets are equal-weighted.

e)Other:

9- Suppose that you have a risky asset that provides you with an expected return of 12% per year with 20% volatility (standard deviation). Consider a risk-free asset that provides you with a 3% risk-free return. What would be the maximum possible expected return on your portfolio?

a)18%

b)15%

c)14%

d)12%

e)Other:

10- What is the correlation between a risk-free asset and a risky asset/portfolio?

a)0

b)1

c)-1

d)Undefined

e)Other:

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