Question 1

The dollar value of the world stock market capitalization,from largest to smallest is:

Accepted Answer

A)  Europe, United States, United Kingdom, Japan. 
B)  United States, Japan, Europe, United Kingdom. 
C)  United States, Europe, Japan, United Kingdom. 
D)  Japan, United States, Europe, United Kingdom. 
E)  Japan, United States, United Kingdom, EuropE. 
A)  Europe, United States, United Kingdom, Japan. 
B)  United States, Japan, Europe, United Kingdom. 
C)  United States, Europe, Japan, United Kingdom. 
D)  Japan, United States, Europe, United Kingdom. 
E)  Japan, United States, United Kingdom, EuropE.

Question 2

A stock has an expected rate of return of 8.3% and a standard deviation of 6.4%. Which one of the following best describes the probability that this stock will lose 11% or more in any one given year?

Accepted Answer

A)  less than 0.5% 
B)  less than 1.0% 
C)  less than 1.5% 
D)  less than 2.5% 
E)  less than 5% 
A)  less than 0.5% 
B)  less than 1.0% 
C)  less than 1.5% 
D)  less than 2.5% 
E)  less than 5%

Question 3

The Zolo Co. just declared that it is increasing its annual dividend from $1.00 per share to $1.25 per share. If the stock price remains constant,then:

Accepted Answer

A)  the capital gains yield will decrease. 
B)  the capital gains yield will increase. 
C)  the dividend yield will increase. 
D)  the dividend yield will also remain constant. 
E)  neither the capital gains yield nor the dividend yield will changE. 
A)  the capital gains yield will decrease. 
B)  the capital gains yield will increase. 
C)  the dividend yield will increase. 
D)  the dividend yield will also remain constant. 
E)  neither the capital gains yield nor the dividend yield will changE.

Question 4

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2011? Rank from highest to lowest.

Accepted Answer

A)  large company stocks, U.S. Treasury bills, long-term government bonds 
B)  small company stocks, long-term corporate bonds, large company stocks 
C)  long-term government bonds, long-term corporate bonds, small company stocks 
D)  small company stocks, large company stocks, long-term corporate bonds 
E)  long-term corporate bonds, large company stocks, U.S. Treasury bills 
A)  large company stocks, U.S. Treasury bills, long-term government bonds 
B)  small company stocks, long-term corporate bonds, large company stocks 
C)  long-term government bonds, long-term corporate bonds, small company stocks 
D)  small company stocks, large company stocks, long-term corporate bonds 
E)  long-term corporate bonds, large company stocks, U.S. Treasury bills

The dollar value of the world stock market capitalization,from largest to smallest is:

A stock has an expected rate of return of 8.3% and a standard deviation of 6.4%. Which one of the following best describes the probability that this stock will lose 11% or more in any one given year?

The Zolo Co. just declared that it is increasing its annual dividend from $1.00 per share to $1.25 per share. If the stock price remains constant,then:

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2011? Rank from highest to lowest.

Introduction to Corporate Finance

Financial Statements and Cash Flow

Financial Statements Analysis and Financial Models

Discounted Cash Flow Valuation

Net Present Value and Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, and Capital Budgeting

Interest Rates and Bond Valuation

Stock Valuation

Return and Risk: the Capital Asset Pricing Model Capm

An Alternative View of Risk and Return: The Arbitrage Pricing Theory

Risk, Cost of Capital, and Valuation

Efficient Capital Markets and Behavioral Challenges

Long-Term Financing

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Valuation and Capital Budgeting for the Levered Firm

Dividends and Other Payouts

Raising Capital

Leasing

Options and Corporate Finance

Options and Corporate Finance: Extensions and Applications

Warrants and Convertibles

Derivatives and Hedging Risk

Short-Term Finance and Planning

Cash Management

Credit and Inventory Management

Mergers, Acquisitions, and Divestitures

Financial Distress

International Corporate Finance

Filters

Exam 10: Risk and Return: Lessons From Market History

The dollar value of the world stock market capitalization,from largest to smallest is:

A stock has an expected rate of return of 8.3% and a standard deviation of 6.4%. Which one of the following best describes the probability that this stock will lose 11% or more in any one given year?

The Zolo Co. just declared that it is increasing its annual dividend from $1.00 per share to $1.25 per share. If the stock price remains constant,then:

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2011? Rank from highest to lowest.

Introduction to Corporate Finance

Financial Statements and Cash Flow

Financial Statements Analysis and Financial Models

Discounted Cash Flow Valuation

Net Present Value and Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, and Capital Budgeting

Interest Rates and Bond Valuation

Stock Valuation

Return and Risk: the Capital Asset Pricing Model Capm

An Alternative View of Risk and Return: The Arbitrage Pricing Theory

Risk, Cost of Capital, and Valuation

Efficient Capital Markets and Behavioral Challenges

Long-Term Financing

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Valuation and Capital Budgeting for the Levered Firm

Dividends and Other Payouts

Raising Capital

Leasing

Options and Corporate Finance

Options and Corporate Finance: Extensions and Applications

Warrants and Convertibles

Derivatives and Hedging Risk

Short-Term Finance and Planning

Cash Management

Credit and Inventory Management

Mergers, Acquisitions, and Divestitures

Financial Distress

International Corporate Finance

Filters