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Question1: Which of the following sets of factors determine the intrinsic value of a security? Explain your answer. amount of risk. current market value of
Question1: Which of the following sets of factors determine the intrinsic value of a security? Explain your answer.
- amount of risk.
- current market value of the security.
III. discount rate applicable to the security.
Please explain answers, thank you!
- estimated future cash flows from the security.
- 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.
- A) falling interest rates
- B) a decrease in the M2 money supply
- C) a fall in Purchasing Managers Indices
- D) low inflation
- E) a decrease in the unemployment rate
- F) a decrease in the MZM money supply
- G) a decrease in employment to population ratio
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