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Please explain all answers! Thank you! Question1: Which of the following sets of factors determine the intrinsic value of a security? Explain your answer. amount

Please explain all answers! Thank you!

Question1: Which of the following sets of factors determine the intrinsic value of a security? Explain your answer.

  1. amount of risk.
  2. current market value of the security.

III. discount rate applicable to the security.

  1. estimated future cash flows from the security.
  2. sector within which the company issuing the security operates

Question 2: Stronger economic growth is good for all stock values and tends to reduce overall markets and individual stocks volatility. Discuss this statement and illustrate using concrete examples

Question 3: Which one of the following is likely to have a negative effect on stock prices? Explain your answer. Note: multiple choices are permitted.

  1. A) falling interest rates
  2. B) a decrease in the M2 money supply
  3. C) a fall in Purchasing Managers Indices
  4. D) low inflation
  5. E) a decrease in the unemployment rate
  6. F) a decrease in the MZM money supply
  7. G) a decrease in employment to population ratio

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