FIN 301 Online Assignment Latest Updated 2025

According to the efficient market hypothesis, using technical analysis to forecast future stock prices is - Correct Ans-Useless Believers of behavioral finance principles do believe that - Correct Ans-Markets are not always efficient According to the Principles of Finance, risk aversion means: - Correct Ans-Investors takes small risks, but do not avoid risk at all cost True or False: According to the principles of finance, investors prefer more risk to less risk. - Correct Ans-False When Professor X started investing with a mutual fund, he had to pay a front-end load of 5% of the money he was investing. What is this front-end load of 5% an example of? - Correct Ans-Transaction Costs According to frank Russell's model of investor emotion through market cycles, investor emotion in 2007 before the financial crisis would be best described as: - Correct Ans Euphoria True or False: In order to achieve the highest level of return for the amount of risk we can take on, it is very important to not diversify our investments into different asset classes, and to only invest in small-cap bio-tech stocks. - Correct Ans-False Beta is used in the capital asset model primarily as a measure of - Correct Ans-Risk What is the correlation between the risk of an investment and its expected return? - Correct Ans-Positive Given the following information, which stock has the highest return? Stock A: Current Price: $100 - Purchase Price: $85 - Dividends Paid: $3 Stock B: Current Price: $630 - Purchase Price: $545 - Dividends Paid: $20 - Correct Ans-Stock A Alcoa announced in a press release that it will acquire Kaiser Aluminum for $90 per share. If the theory of efficient capital markets is correct, what happens to Kaiser Aluminum's stock? - Correct Ans-Immediately trades up to $90 FIN 301 According to the principals of finance, in the long-run stock prices are driven by - Correct Ans-Corporate earnings All else equal, which of the following stocks should have the highest expected return? Stock A: Standard Deviation - 15% Stock B: Standard Deviation - 30% Stock C: Standard Deviation- 5% - Correct Ans-Stock B True or False: Small-cap stocks are riskier than corporate bonds. - Correct Ans-True Apple's stock traded at $260 a year ago. If Apple's stock currently trades at $320 and Apple paid a $10 per share dividend, what was the return on Apple's stock? - Correct Ans-26.9% According to the principles of finance, what should be management's goal when making corporate decisions? - Correct Ans-Maximizing Shareholder Value If you invest in a stock with a beta of 0.7, you would expect your return to be - Correct Ans-Lower than that of the overall market According to the principles of finance, diversification does what to the risk of an investment portfolio? - Correct Ans-Decreases The primary business of Warren Buffet's Berkshire Hathaway is: - Correct Ans Insurance True or False: A dollar today is worth less than a dollar tomorrow. - Correct Ans-False