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Posted: November 22nd, 2023
Multiple choice questions Only one answer per question,
1) When investing in common stocks, an investor must have to follow objective: (1 point)
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a. to avoid stocks overvalued
b. to purchase finir valued stocks
c. to buy undervalued stocks
d. A and C only.
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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
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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
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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)
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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
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