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$75.00 $88.00 $88.75 $887.50 $1,000.00 11. Assume the beta for the stock market

ID: 2740252 • Letter: #

Question

       $75.00
       $88.00
       $88.75
       $887.50
       $1,000.00

11. Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.4. If the stock market increases in value by 10 percent, what is the expected increase in value for the World-Wide Productions stock? (Points : 1)

       12 percent
       20 percent
       24 percent
       48 percent
       14 percent

       closed-end
       open-end
       load
       no-load
       convertible fund.

       Global investments must be evaluated just like other investment alternatives.
       Since global investments can only be bought in the U.S., there is no need to worry about currency exchange rates.
       Today, very few investors are investing in stocks and bonds issued by foreign firms or in global mutual funds.
       For most small investors, it makes more sense to invest in stocks and bonds issued by individual foreign firms, rather than in global mutual funds.
       Evaluating global investments is easy because there is plenty of good information available.

       The first order of business for an investor is acquiring the money needed to begin investing.
       To be useful, investment objectives must be very general.
       Investment goals are the same for each individual.
       Because investment objectives deal with the future, it is useless to plan more than five years in the future.
       A long-term investment objective involves a time period of five years or less.

7. If a bond is quoted in the newspaper at 88.75, the current price of a $1,000 face value bond is: (Points : 1)

       $75.00
       $88.00
       $88.75
       $887.50
       $1,000.00

11. Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.4. If the stock market increases in value by 10 percent, what is the expected increase in value for the World-Wide Productions stock? (Points : 1)

Explanation / Answer

Ans 7 is .8875*1000=887.50

Ans 11 is 24% = 10%*2.4=24%

Ans 14: no load : A no load fund is that mutual fund wherein investor dont need to pay the sales charges.

Ans 15: ans is : Global investments must be evaluated just like other investment alternatives. - This is true statements