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Greenwich English College *
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123
Subject
Finance
Date
Nov 24, 2024
Type
docx
Pages
2
Uploaded by SargentRiverPolarBear33
61.
Question:
In financial markets, what is the significance of the VIX (Volatility Index)?
A) Measures the overall health of the stock market
B) Indicates the average dividend yield of a stock
C) Evaluates the volatility and risk in the market
D) Assesses the efficiency of portfolio management
62.
Question:
What does the term "ROIC" (Return on Invested Capital) measure?
A) The return on assets owned by a company
B) The return on debt financing
C) The return generated from all sources of capital, including debt and equity
D) The return on equity capital only
63.
Question:
What is the purpose of a hedge fund in investment management?
A) Providing low-risk investment options
B) Managing interest rates
C) Pooling funds from investors to pursue various investment strategies
D) Regulating currency exchange rates
64.
Question:
What is the significance of the Black-Scholes-Merton model in options pricing?
A) Determines the fair market value of options
B) Evaluates the liquidity of financial markets
C) Assesses the creditworthiness of bond issuers
D) Controls the interest rates set by central banks
65.
Question:
In the context of personal finance, what does the term "FICO score" measure?
A) The income level of an individual
B) The risk of default on credit obligations
C) The total assets owned by an individual
D) The tax liability of an individual
66.
Question:
What is the role of a financial planner in personal finance?
A) Managing interest rates for clients
B) Facilitating currency exchange for clients
C) Providing advice on budgeting, investing, and retirement planning
D) Regulating international trade agreements
67.
Question:
What does the term "capital structure" refer to in corporate finance?
A) The mix of a company's debt and equity financing
B) The market value of a company's stock
C) The total assets of a company
D) The composition of a company's board of directors
68.
Question:
In financial markets, what is the primary function of a stock index?
A) Facilitating currency exchange
B) Regulating interest rates
C) Representing the performance of a specific group of stocks
D) Managing international trade agreements
69.
Question:
What is the purpose of a cost of goods sold (COGS) statement in financial reporting?
A) To show the overall financial position of a company
B) To disclose the ownership structure of a company
C) To outline a company's direct costs associated with producing goods
D) To evaluate the market capitalization of a company
70.
Question:
What is the concept of "opex" (operating expenses) in financial management?
A) The cost of short-term borrowing
B) The total value of a company's assets
C) The ongoing costs of running a business
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Related Questions
What does the capital asset pricing model (CAPM) calculate?
a.
The expected rate of return on an individual stock with respect to the risk-free rate of return
b.
The expected rate of return of an individual stock based on its overall risk
c.
The expected rate of return of an individual stock with respect to its market risk only
d.
The expected rate of return of an individual stock reflecting its financial risk
Clear my choice
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The cost of equity is ________.
Group of answer choices
A. the interest associated with debt
B. the rate of return required by investors to incentivize them to invest in a company
C. the weighted average cost of capital
D. equal to the amount of asset turnover
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Estimate an investments future value?
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1. What are the quantitative characteristics of the assets and how to measure them?
2. How does one asset in the same portfolio influence the other one in the same portfolio?
3.And what could be the influence of this relationship to the investor’s portfolio?
4. What is relationship between the returns on an asset and returns in the whole market (market portfolio)
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Which statement is not true regarding the market portfolio?
Group of answer choices
a. It includes all publicly-traded financial assets.
b. It lies on the efficient frontier.
c. All securities in the market portfolio are held in proportion to their market values.
d. It is the tangency point between the capital market line and the indifference curve.
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According to the single index model, the factor that drives the returns of all assets is:a. Money.b. The market.c. The interest rate.d. The firm’s book-to-value
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The cost of equity is ________.
a.equal to the amount of asset turnover
b.the interest associated with debt
c.the weighted average cost of capital
d.the rate of return required by investors to incentivize them to invest in a company
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For an unlevered firm, the cost of capital can be determined by using the ________.
A. Preferred stock yield
B. Yield to maturity on the traded debt
C. Capital Asset Pricing Model
D. Dividend yield
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Which of the following represents the return a stockholder is actually earning on their investment:
Dividend yield
Earnings per share
Return on equity
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How is treasury stock reported on the balance sheet?
Select one:
Investment
Contra asset
Current asset
Reduction of stockholders' equity
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Which of the following statements is true?
I. The formula for the return on equity is: Return on equity = Net income ÷ Average total stockholders' equity.
II. When computing the return on equity, retained earnings should be excluded from the average total
stockholders' equity.
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Briefly discuss the pros and cons of the three (3) approaches used by analysts to value a company’s equity, namely, the free cash flow based approaches, earnings-based approaches, and market-based approaches. Please provide numerical examples.
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When liabilites increase and stock holder equity decreases, what is the total assets?
shouldn't it be total liabilites plus total stock holder equity=total assets?
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Related Questions
- What does the capital asset pricing model (CAPM) calculate? a. The expected rate of return on an individual stock with respect to the risk-free rate of return b. The expected rate of return of an individual stock based on its overall risk c. The expected rate of return of an individual stock with respect to its market risk only d. The expected rate of return of an individual stock reflecting its financial risk Clear my choicearrow_forwardThe cost of equity is ________. Group of answer choices A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnoverarrow_forwardEstimate an investments future value?arrow_forward
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