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practicing question, did i do this 4 questions correctly? this 2 questions Question 1 This question consists of TEN(10) multiple-choice questions. Choose only one correct

practicing question, did i do this 4 questions correctly?
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this 2 questions
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Question 1 This question consists of TEN(10) multiple-choice questions. Choose only one correct answer from the given choices (A), (B), (C), (D) and (E). Write all answers of this question on the same page in your answer book. Each multiple-choice question carries three(3) marks. (1) Which of the following statements is most correct? (A) If a company maximizes the cash that it generates in the future, it will also maximize its share price. (B) When a company reduces it dividend payout ratio, the intrinsic value of its shares will decrease. (C) If a company changes its capital structure such that both its cost of equity and cost of debt increase, it will also cause its WACC to increase. Note: Question No. 1 continues on page 2 niss e sividends regularfy (i4) hir el ewninied purtfolio, the portfolio boca and portfolio standard deviation bie bees of the stinch if nqual to mero. 17) If a at si-han nogative beta. is implias that the standard desiation of the sesch" s moniti is negative. (h) If the keta of a succh is zero, if implies that the standarf deviation of the stokk" s rutum is equal to ror. (1). Tue different 10year caah ilow streams have the same present values at the same nonisal inirest rate X, compounded monthly, Which of the following statements is werrest? 349,64 . (A) Both aach flow streams must have the same amounts of cach every ycir. (3) Both cash flow strams will have the same present values at any other oominal interest rate, compounded monthly. (C) Boch cash flow strams will have different future values at the same nominal interest rafe X, compounded monthly. (D) Both cash flow streams will have the same future values at the same nominal isterest rate X, compounded monthly. (E) None of the above statements is correct. (4) Which of the following statements is correct? (A) If the befa of a stock is 1.5, then the stock's return will be 15% if the markef return is 10% (B) A stock with lower market risk is always a better investment compard to a stock with higher market risk x. (C) If the standard deviation of returns of a stock is lower than that of the markct. the beta of the stock will be less than 1. (D) If the bela of a stock is zero, the standard deviation of its returns mast be cqual to zero. (E) None of the above statements is correct. Note: Question No, I continues on page 3 Question 1 This question consists of TEN(10) multiple-choice questions. Choose only one correct answer from the given choices (A), (B), (C), (D) and (E). Write all answers of this question on the same page in your answer book. Each multiple-choice question carries three(3) marks. (1) Which of the following statements is most correct? (A) If a company maximizes the cash that it generates in the future, it will also maximize its share price. (B) When a company reduces it dividend payout ratio, the intrinsic value of its shares will decrease. (C) If a company changes its capital structure such that both its cost of equity and cost of debt increase, it will also cause its WACC to increase. Note: Question No, 1 continues on page 2 (2) Whreh of the following statements is most correct? (A) In a diversifiod porfolio, the portfolio beta and portfolio standard deviation are minimized. (11) The main purpose of creating a portfolio is to achieve minimum market risk. (6) When a stock's retums are not correlated with the returns of the market, then the beti of the stock is equal to zero. (i) If a stock has negative beta, it implies that the standard deviation of the stock's neturn is negative. (1) If the beta of a stock is zero, it implies that the standard deviation of the stock's returns is equal to zero. Question 1 This question consists of TEN(10) multiple-choice questions. Choose only one correct answer from the given choices (A), (B), (C), (D) and (E). Write all answers of this question on the same page in your answer book. Each multiple-choice question carries three(3) marks. (1) Which of the following statements is most correct? (A) If a company maximizes the cash that it generates in the future, it will also maximize its share price. (B) When a company reduces it dividend payout ratio, the intrinsic value of its shares will decrease. (C) If a company changes its capital structure such that both its cost of equity and cost of debt increase, it will also cause its WACC to increase. Note: Question No. 1 continues on page 2 niss e sividends regularfy (i4) hir el ewninied purtfolio, the portfolio boca and portfolio standard deviation bie bees of the stinch if nqual to mero. 17) If a at si-han nogative beta. is implias that the standard desiation of the sesch" s moniti is negative. (h) If the keta of a succh is zero, if implies that the standarf deviation of the stokk" s rutum is equal to ror. (1). Tue different 10year caah ilow streams have the same present values at the same nonisal inirest rate X, compounded monthly, Which of the following statements is werrest? 349,64 . (A) Both aach flow streams must have the same amounts of cach every ycir. (3) Both cash flow strams will have the same present values at any other oominal interest rate, compounded monthly. (C) Boch cash flow strams will have different future values at the same nominal interest rafe X, compounded monthly. (D) Both cash flow streams will have the same future values at the same nominal isterest rate X, compounded monthly. (E) None of the above statements is correct. (4) Which of the following statements is correct? (A) If the befa of a stock is 1.5, then the stock's return will be 15% if the markef return is 10% (B) A stock with lower market risk is always a better investment compard to a stock with higher market risk x. (C) If the standard deviation of returns of a stock is lower than that of the markct. the beta of the stock will be less than 1. (D) If the bela of a stock is zero, the standard deviation of its returns mast be cqual to zero. (E) None of the above statements is correct. Note: Question No, I continues on page 3 Question 1 This question consists of TEN(10) multiple-choice questions. Choose only one correct answer from the given choices (A), (B), (C), (D) and (E). Write all answers of this question on the same page in your answer book. Each multiple-choice question carries three(3) marks. (1) Which of the following statements is most correct? (A) If a company maximizes the cash that it generates in the future, it will also maximize its share price. (B) When a company reduces it dividend payout ratio, the intrinsic value of its shares will decrease. (C) If a company changes its capital structure such that both its cost of equity and cost of debt increase, it will also cause its WACC to increase. Note: Question No, 1 continues on page 2 (2) Whreh of the following statements is most correct? (A) In a diversifiod porfolio, the portfolio beta and portfolio standard deviation are minimized. (11) The main purpose of creating a portfolio is to achieve minimum market risk. (6) When a stock's retums are not correlated with the returns of the market, then the beti of the stock is equal to zero. (i) If a stock has negative beta, it implies that the standard deviation of the stock's neturn is negative. (1) If the beta of a stock is zero, it implies that the standard deviation of the stock's returns is equal to zero

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