FIN3702 Assignment 1 Semester 1 2023 (Questions and Answer){Distinction A+}
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The historical returns on large-company stocks, as reported by Ibbotoson and Sinqufield, are based on: - -The stocks of the 500 companies of the public traded firms in the U.S. -The present value o... f an investments cash inflows divided by the investments initial cost is called the: - -probability index -Which of the following is the preferred method of analyzing a proposed investment? - -Net present value -The difference between an investments market value and its cost is called the: - -Net present value -The lower the standards deviation of a security, the _________ the expected rate of return and the _________ the risk. - -lower; lower -The return on which one of the following is used as the risk-free rate of return? - -U.S. Treasury bills -If by accepting one investment you eliminate the option of another investment, you are dealing with: - -mutually exclusive investments -The analysis of the effect that a single variable has on the net present value of a project is called _______ analysis. - -sensitivity -A net present value of zero implies that an investment: - -is earning a return that exactly matches the requirement -The concept that the expected return on an investment depends solely on that asset's non-diversifiable risk is referred to as: - -The principle of diversification -The percentage of a portfolio's value that is represented by a single security is referred to as the: - -portfolio weight -The most valuable alternate that is fortified if a particular investment is undertaken is called: - -an opportunity cost -The average compound return earned per year over a multiyear period is called the _______ return. - -geometric average -The goal of financial management is to increase the: - -current market value per share -Which one of the following is correct regarding a general partnership? - -Each partner has unlimited liability for the partnership debts [Show More]
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