4. If all investors become more risk averse the Security Market Line will ______

Question

4. If all investors become more risk averse the Security Market Line will _______________ and stock prices will _______________. (Points : 1)

shift upward; rise

shift downward; fall

have the same intercept with a steeper slope; fall

have the same intercept with a flatter slope; rise

       will be higher than the intrinsic value of stock B
       will be the same as the intrinsic value of stock B
       will be less than the intrinsic value of stock B
       more information is necessary to answer this question

       4.5%
       6.0%
       7.75%
       8.5%
       9.25%

       8.4%
       7.4%
       7.5%
       8.25%
       7.75%

14. You wish to earn a return of 11% on each of two stocks, A and B. Stock A is expected to pay a dividend of $3 in the upcoming year while stock B is expected to pay a dividend of $2 in the upcoming year. The expected growth rate of dividends for both stocks is 4%. Using the constant growth DDM, the intrinsic value of stock A _________. (Points : 2)

Explanation / Answer

4.shift downward; fall

14.will be less than the intrinsic value of stock B

16. 6.0%

17.$28.48

18.65%

19.Purchase price of FYI = $60
Dollar amount of initial margin requirement = $6400

20. $6400 -$1000 = $5400

21.7.4%

23.II and III

24.true

25.false

26.false

27.true

28 false

33. Strong and semi-strong forms of efficiency

37.true

30. I thnk the answer is Correlation Coefficient... bu i'm not 100% sure

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