Question
QUESTION 4 For a premium bond, the coupon interest rate should be lower than its yield to maturity. ______ True False QUESTION 7 Which of
QUESTION 4
For a premium bond, the coupon interest rate should be lower than its yield to maturity. ______
True
False
QUESTION 7
Which of the following statements about portfolio is true? ______
| The expected return of a portfolio is the weighted average of the expected returns of all individual stocks in the portfolio. | |||||||||||||
| The standard deviation of a portfolio is the weighted average of the standard deviations of all individual stocks in the portfolio. | |||||||||||||
| Portfolio beta is NOT the weighted average of the beta values of all individual stocks in the portfolio. | |||||||||||||
| Both A and C are correct.
QUESTION 8 Any change in risk-free rate is likely to affect the required rate of return on a stock, which implies that a change in risk-free rate will likely have an impact on the stock's price._____ True False QUESTION 9 If we assume a perpetuity pays $50 per year forever. What would the perpetuity be worth if the required rate of return is 10%? ______
QUESTION 11 For a supernormal dividend growth stock, the capital gain yield of the stock is NOT equal to the dividend growth rate g during supernormal growth period. True False QUESTION 14 If a stock's expected rate of return is 12% and the required rate of return is 10%, the stock is believed to be ______ Undervalued. Overvalued. Fairly-valued QUESTION 15 A 10-year corporate bond has an annual coupon payment of 9%. The bond is currently selling at par ($1,000). Which of the following statement is NOT correct? The bond's yield to maturity is 9%. The bond's current yield is 9%. If the bond's yield to maturity remains constant, the bond's price will remain at par. The bond's capital gain yield is 9%.
QUESTION 16 At maturity, the value of either premium bond or discount bond equals to its par value. ______ True. False. QUESTION 17 Which of the following statements is not correct?_____ Preferred dividends paid are tax deductible. Interest expense is NOT tax deductible. Common dividends paid are tax deductible. None of the statements above is correct. |
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