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