Question 11:

Historically, on average, the return distribution of stock index was _____________ and September usually offered ____________ return.

Group of answer choices

positively skewed; positive

negatively skewed; negative

positively skewed; negative

negatively skewed; positive

Question 12

A bond with a sinking fund has __________ coupon than one without;

and a debenture has ___________ coupon than a secured debt.

Group of answer choices

higher; lower

lower; higher

lower; lower

higher; higher

Question 13

Historically, on average, which of the following portfolios offered the LOWEST returns?

Group of answer choices

small-company stocks

long-term government bonds

large-company stocks

Question 14

Consider NPV and IRR for investment decisions.

When cash flows change signs more than once, there would be more than one ___________, and

___________ is better for investment decisions according to the SWM model,

Group of answer choices

NPV; NPV

IRR; IRR

NPV; IRR

IRR; NPV

Question 15

Consider the constant-growth dividend discount model, P_o = D₁ /(k - g).

I. Dividends grow at a constant rate. II. The required rate of return is larger than the dividend growth rate.

Group of answer choices

II only

I and II

I only

Neither I nor II