Exam (elaborations)
FIN 301 MIDTERM EXAM 2024/2025 VERIFIED QUESTIONS AND ANSWERS GRADED A+(SOLVED)
- Course
- Institution
FIN 301 MIDTERM EXAM 2024/2025 VERIFIED QUESTIONS AND ANSWERS GRADED A+(SOLVED)
[Show more]
Content preview
FIN 301 MIDTERM EXAM 2024/2025FIN 301 MIDTERM EXAM 2024/2025 VERIFIED
QUESTIONS AND ANSWERS GRADED
A+(SOLVED)
Small cap stocks are riskier than corporate bonds
true
investors believe that transaction costs, taxes, and inflation are the enemy bc they
reduce the return on your investments
true
the basic principles of finance dictate that in the short run, stock prices are driven
by
supply and demand
Which of the following would reduce returns of your investment portfolio
increase in brokerage commissions
,FIN 301 MIDTERM EXAM 2024/2025
if Apple's stock was at 260 a year ago and trades at 320 today and there was a $10
dividend, what is the return
320-260 + = 26.9%
If a stock is currently trading at 100 but a company says they will acquire that
company's stock for $120 then what will happen to the stock according to the
efficient market hypothesis
it will increase as soon as the announcement is made
what does the efficient market hypothesis say about using technical analysis to
forecast future stock prices
it is useless
If you invest in a stock with a beta of .7 you would expect your return to be
lower than that of the overall market
the random walk hypothesis states that
day to day stock prices move randomly and independently from one another
,FIN 301 MIDTERM EXAM 2024/2025
the primary business of Berkshire Hathaway is
insurance
inflation reduces your return by
reducing the value of the money you receive on the investment
risk aversion means
investors take small risks but do not avoid risk at all costs
behavioral finance believes that
markets are not always efficient
to achieve the highest level of return you have to
diversify your investment into different asset classes
long run stock prices are driven by
corporate earnings
, FIN 301 MIDTERM EXAM 2024/2025
What do behavioral financiers not believe
that decision makers make rational decisions that maximize utility
what is a up front cost of 5% an example of
transaction cost
management must act in whose interest
shareholders
which stock is less risky? biotech or utility
utility
the basic principles of finance dictate that in the short run, stock prices are driven
by
supply and demand
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SHANEDOE. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77858 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
