Question
Please complete the following investment questions: 1. As a group, which stocks have the lower beta? (multiple choice) (A) Utilities (B) Industrial Stocks 2. Stock
Please complete the following investment questions:
1. As a group, which stocks have the lower beta? (multiple choice)
(A) Utilities (B) Industrial Stocks
2. Stock splits make a company fundamentally cheaper and therefore a better buy: (true or false)
3. Markets are: (multiple choice)
(A) perfectly efficient (B) mostly efficient
4. Recency bias says that since the market has been going up it will just continue going up: (true or false)
5. If the market has a price/earnings ratio of 20 (20/1), its earnings yield is ?
6. What are the two most important things when valuing any income-producing asset (select two)?
(A) The market (B) Interest rate (C) The economy (D) Cash flows
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