Posted: November 22nd, 2023
Investment Assignment
Multiple choice questions Only one answer per question,
1) When investing in common stocks, an investor must have to follow objective: (1 point)
a. to avoid stocks overvalued
b. to purchase finir valued stocks
c. to buy undervalued stocks
d. A and C only.
2) What is not a characteristic of common shares? (1 point)
a. shareholders have preference to receive the company’s assets in bankruptcy
b. shareholders have limited liability
c. shareholders have voting right
c. shareholders may receive dividends
3) Concerning the efficient market hypothesis, what is correct to say? (1 point)
a. Stocks are not necessarily in equilibrium
b. Investors may beat the market
c. All stock prices are fair valued
d. The price of a stock does not always adjust to any new information
4. Which one of the following changes will increase the NPV of a project? 1 point)
a. A decrease in the discount rate
b. A decrease in the size of the cash inflows
c. An increase in the initial cost of the project
d. A decrease in the number of cash inflows. Get Finance homework help today