FINA 3315 UTA Exam 1 Practice Questions and Answers 100% Pass

FINA 3315 UTA Exam 1 Practice Questions and Answers 100% Pass Commonly used multiples for determining and stocks value include I - Price to earnings II - Price to sales III - Price to cash flow IV - Price to dividends - I, II, and III only Traditional portfolio managers prefer well known companies because? I. stocks of well known firms tend to be less risky than stocks of lesser known firms.− − II. individuals are more apt to purchase a mutual fund if it contains stocks of well known firms.− 2100% Pass Guarantee Sophia Bennett, All Rights Reserved © 2025 III. window dressing encourages the purchase of well known stocks.− IV. institutional investors tend to exhibit "herd like" behavior. - All of the above (one, two, three, four) Combining uncorrelated assets will - decrease the overall risk level of a portfolio. To compute the present value of $1000 annuity Received at the end of each of the next three years and discount at the rate of 5% per year, you should use which of the following excel commands? - PV: present value Which one of the following Types of risk cannot be effectively eliminated through portfolio diversification? - inflation risk Beginning investors with small amounts to invest should - buy mutual funds or exchange traded funds (ETFs). Which of the following is not a wing scheme commonly used in creating equity market indexes? - Industry weighted The date on which an investor must be registered shareholder of the firm in order to receive a dividend is called the? - Date of record Companies offering their stock to the public for the first time usually seek the assistance of - investment bankers 3100% Pass Guarantee Sophia Bennett, All Rights Reserved © 2025 It is not unusual for bear markets to occur two or more times in any given ten year period - True Which of the following statements about short selling is (are) true? I. Short selling requires an initial margin deposit. II. Short sellers begin a transaction with a sale and end it with a purchase. III. Short sellers profit when the stock prices rises. IV. Short selling can be a risky strategy - C. I, II and IV only Electronic trading systems have increased transaction costs of odd lot trades. - False Which of the following best describes the relationship between a stock's beta and the standard deviation of the stock's returns? - A. The relationship depends on the correlation between the stock's returns and the market's retu