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Examen

Chapter 11

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Fundamentalists typically use the "Bottom-Up Approach" whereas technicians use the "Top-Down Approach" to the valuation process. -(correct answer)False Empirical studies have shown that the market factor has increased over time and now accounts for the majority of an individual stock's price variance. -(correct answer)False The general economic influences would include inflation, political upheavals, monetary policy, and fiscal policy initiatives. -(correct answer)True Given an optimistic economic and stock-market outlook for a country, the investor should underweight the allocation to this country in his/her portfolio. -(correct answer)False The importance of an industry's performance on an individual stock's performance varies across industries. -(correct answer)True If the estimated value of an asset is greater than the market price, you would want to buy the investment. -(correct answer)True The most difficult part of valuing a bond is determining the required rate of return on this investment. -(correct answer)True A preferred stock is a perpetuity. -(correct answer)True Growth companies are those firms that consistently earn higher rates of return by assuming greater amounts of risk. -(correct answer)False The growth rate of dividends and profit margin are the main determinants of the P/E ratio. -(correct answer)False The dividend growth models are only meaningful for companies that have a required rate of return that exceeds their dividend growth rate. -(correct answer)True The three step valuation process consists of (1) analysis of alternative economies and markets, (2) analysis of alternative industries and (3) analysis of industry influences. -(correct answer)False The two components that are required in order to carry out asset valuation are (1) the stream of expected cash flows and (2) the required rate of return. -(correct answer)True The importance of an industry's performance on an individual stock's performance varies across industries. -(correct answer)True If the intrinsic value of an asset is greater than the market price, you would

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ECON 306 ASU Exam 2 With Correct
Answers 2025
binds the tariffs and trade policies of nations and limits arbitrary changes -(correct answer)The

General agreement on trades and tariffs assists developing nations through the provisions of

loans and advice -(correct answer)The World Bank Provides technical advise and expertise to

national governments -(correct answer)The international monetary fund provides rules for the

resolution of trade disputes between nations -(correct answer)The world trade organization

acts as a forum for the discussion and implementation of further reductions in trade barriers

-(correct answer)the world trade organization Why was the IMF (international monetary fund)

created? -(correct answer)to manage the system of fixed exchange rates after WWII What is

the relationship between GATT and WTO? -(correct answer)WTO continues and expands the

efforts of GATT Trading agreement that allows discriminatory treatment against non members

-(correct answer)Regional Trade Agreements or Trade Blocs which list places regional trade

agreements in an order moving from the least provisions to the most? -(correct answer)Free

trade area, common market, economic union Suppose the U.S. imports wool from​ low-cost

producer New Zealand. If the U.S. signed a regional trade agreement with Britain​ (assume

Britain produces wool at a higher cost than New​ Zealand) that lowers tariffs on British​

wool, it is possible that the U.S. might switch to importing wool from Britain. Such an outcome

illustrates the potential for regional trade agreements to -(correct answer)bring about​ "Trade

Diversion" which is harmful to the world economy. Public goods differ from private goods in

that the former are... -(correct answer)non-excludable, non-diminishable, and often provided

collectively Allows goods and services to cross international borders without paying a tariff and

without limitations imposed by quotas. -(correct answer)Free Trade area Allows goods and

services to cross international borders without paying a tariff and without limitations imposed

by quotas plus a common set of tariffs toward nonmembers plus an agreement to allow the

free mobility of inputs such as labor and capital. -(correct answer)Common Market Allows

goods and services to cross international borders without paying a tariff and without limitations

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Subido en
14 de mayo de 2025
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