If all investors become more risk averse the Security Market Line will _______________ and stock prices will _______________. 

shift upward; rise

shift downward; fall

have the same intercept with a steeper slope; fall

have the same intercept with a flatter slope; rise

You wish to earn a return of 11% on each of two stocks, A and B. Stock A is expected to pay a dividend of $3 in the upcoming year while stock B is expected to pay a dividend of $2 in the upcoming year. The expected growth rate of dividends for both stocks is 4%. Using the constant growth DDM, the intrinsic value of stock A _________. 

will be higher than the intrinsic value of stock B
will be the same as the intrinsic value of stock B
will be less than the intrinsic value of stock B
more information is necessary to answer this question

You put up $50 at the beginning of the year for an investment. The value of the investment grows 4% and you receive a dividend of $3.50. Assuming there was 2.5% inflation during the year, your inflation-adjusted or real Holding Period Return was _____ (Points : 2)

4.5%
6.0%
7.75%
8.5%
9.25%

XYZ stock's current earnings per share are $2.50 and are projected to grow 12% over the next 12-months. Typically, XYZ's price earnings multiple trades at about 80% of its growth rate. What is the target or expected price of XYZ 12 months hence? 

$28.24
$28.48
$26.88
$30.64
$29.74

If the internal growth rate = 18% and the return on equity = 24%, the implied earnings retention rate is: (Points : 2)

80%
85%
75%
65%
90%

Question 19.19. If an investors buys 200 shares of FYI and has an initial margin requirement of 60%, and the total value of the purchase is $8000, what is the implied purchase price of FYI and the dollar amount of the initial margin requirement? (Points : 2)

Purchase price of FYI = $60
Dollar amount of initial margin requirement = $4000

Purchase price of FYI = $40
Dollar amount of initial margin requirement = $4800

Purchase price of FYI = $60
Dollar amount of initial margin requirement = $3200

Purchase price of FYI = $60
Dollar amount of initial margin requirement = $6400

Purchase price of FYI = $40
Dollar amount of initial margin requirement = $5600

If an investors buys 200 shares of FYI and has an initial margin requirement of 60%, and the total value of the purchase is $8000, what is the dollar amount of the margin loan? (Points : 2)

$4200
$4800
$5400
$3200
$3600

If a taxable yield for a given investment is 9.25%, and the investor faces a marginal tax rate of 20%, what is the equivalent yield on a tax-free investment? (Points : 2)

8.4%
7.4%
7.5%
8.25%
7.75%

The value of a bond is a function of:

I. Interest payments
II. Par or maturity value of principal
III. Required rate of return
IV. Time to maturity
(Points : 1)

I and III
II and III
I, II, III and IV
I, III and IV
II, III and IV