KU Finance 310 Exam 2 UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (43)
Which of the following statements is true? Over time, if yields do not change, the values of premium bonds decrease toward
par smoothly.
Which of the following statement is FALSE? Holders of preferred stock have greater voting rights in corporate decisions than
holders of common stock
Newly issues securities are sold to investors in which of Primary
the following markets?
Which of the following statements is FALSE? One reason why the Average Accounting Return is a flawed measure in making
business decision is that it is based on cash flows.
If any, which of the following statements if FALSE? NPV is the discounted present value of a project's expected future accounting net
income at the required return, subtracting the initial investment
Which of the following statements is TRUE? Managerial real options can be very valuable but difficult to measure, and
ignoring them will underestimate a project's true Net Present Value
Which of the following statements is FALSE? The average return is always less than the geometric return
Which of the following statements is TRUE? Efficient markets react to new information by instantly adjusting the price of a
stock to its new fair market value without any delay or overreaction
Which of the following statements is TRUE? If a portfolio has a positive investment in every asset, the standard deviation on
the portfolio can be less than that on every asset in the portfolio.
Portfolio diversification eliminates which of the following? Unsystematic Risks
A broker is an agent who: Brings buyers and sellers together
Fill in the blanks: Stock prices fall if investors either Lower, Higher
expect _________ growth rates or require __ returns.
The average accounting return method of analyzing Is similar to calculating the Return on Assets
projects:
Which of the following should not be included in the The amount paid 4 years ago for an existing building to be used in the project
analysis of proposed investment?
Which of the following statements is FALSE? Under intense competition, positive NPV projects are as common as negative
NPV projects.
C
Terms in this set (43)
Which of the following statements is true? Over time, if yields do not change, the values of premium bonds decrease toward
par smoothly.
Which of the following statement is FALSE? Holders of preferred stock have greater voting rights in corporate decisions than
holders of common stock
Newly issues securities are sold to investors in which of Primary
the following markets?
Which of the following statements is FALSE? One reason why the Average Accounting Return is a flawed measure in making
business decision is that it is based on cash flows.
If any, which of the following statements if FALSE? NPV is the discounted present value of a project's expected future accounting net
income at the required return, subtracting the initial investment
Which of the following statements is TRUE? Managerial real options can be very valuable but difficult to measure, and
ignoring them will underestimate a project's true Net Present Value
Which of the following statements is FALSE? The average return is always less than the geometric return
Which of the following statements is TRUE? Efficient markets react to new information by instantly adjusting the price of a
stock to its new fair market value without any delay or overreaction
Which of the following statements is TRUE? If a portfolio has a positive investment in every asset, the standard deviation on
the portfolio can be less than that on every asset in the portfolio.
Portfolio diversification eliminates which of the following? Unsystematic Risks
A broker is an agent who: Brings buyers and sellers together
Fill in the blanks: Stock prices fall if investors either Lower, Higher
expect _________ growth rates or require __ returns.
The average accounting return method of analyzing Is similar to calculating the Return on Assets
projects:
Which of the following should not be included in the The amount paid 4 years ago for an existing building to be used in the project
analysis of proposed investment?
Which of the following statements is FALSE? Under intense competition, positive NPV projects are as common as negative
NPV projects.
