Exam (elaborations)
INV3701 ASSIGNMENT 1 SEMESTER 2 2023
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7/29/23, 9:52 PM Assessment 1: Attempt reviewINV3701-23-S2 Welcome Message Assessment 1
QUIZ
Started on Saturday, 29 July
2023, 9:42 PM
State Finished
Completed on Saturday, 29 July
2023, 9:52 PM
Time taken 10 mins 22 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following statements are
most likely correct? The purpose of the
valuation model include …
a. dividend payment.
b. appraising private business.
c. rendering fairness options.
Your answer is correct.
The correct answer is:
appraising private business.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11645064&cmid=624071 1/20
,7/29/23, 9:52 PM Assessment 1: Attempt review
Question 2
Correct
Mark 1.00 out of 1.00
Which one of the following statements is
most likely correct regarding steps and
activities/actions in the equity valuation
process?
a. An analyst applies the valuation
conclusions by choosing the free
cash flow to equity (FCFE)
model.
b. An analyst carries out a
sensitivity analysis to
convert his forecast into a
valuation.
c. An analyst helps the firm he is
evaluating compile their financial
statements to convert his
forecast into a valuation.
Your answer is correct.
The correct answer is:
An analyst carries out a sensitivity
analysis to convert his forecast into a
valuation.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11645064&cmid=624071 2/20
, 7/29/23, 9:52 PM Assessment 1: Attempt review
Question 3
Correct
Mark 1.00 out of 1.00
Use the following information to answer
questions 3 to 4.
Expected CAPM FF
rate of required required
return rate of rate of
return return
Share 1 0.23 0.19 0.20
Share 2 0.10 0.12 0.12
Share 3 0.08 0.15 0.08
Calculate the alpha of the securities
using the capital asset pricing model
(CAPM).
a. Security 1 = -0.01; Security 2 =
0; Security 3 = 0.07
b. Security 1 = 0.03; Security 2 =
-0.02; Security 3 = 0
c. Security 1 = 0.04;
Security 2 = -0.02;
Security 3 = -0.07
d.
Your answer is correct.
The correct answer is:
Security 1 = 0.04; Security 2 = -0.02;
Security 3 = -0.07
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11645064&cmid=624071 3/20
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