FIN 370 Midterm Exam Questions and
Answers Graded A+
Active Investing - Correct answer-carried out with the goal of outperforming the
market
Passive Investing - Correct answer-tends to focus on buying and holding securities
in an effort to match the risk and return of a target, such as a highly diversified
index.
Macroeconomic Factors of Investing - Correct answer-
Enterprise Value - Correct answer-Market Value of Equity + Debt - Cash
Market Capitalization - Correct answer-Price of Stock * Shares Outstanding
How much it would cost to purchase a company - Correct answer-What does the
enterprise value of a stock show?
Price of Stock - Correct answer-how much it costs to purchase a share of stock
Value of Stock - Correct answer-Value of Equity/Shares Outstanding
*Intrinsic Value of Stock
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
Answers Graded A+
Active Investing - Correct answer-carried out with the goal of outperforming the
market
Passive Investing - Correct answer-tends to focus on buying and holding securities
in an effort to match the risk and return of a target, such as a highly diversified
index.
Macroeconomic Factors of Investing - Correct answer-
Enterprise Value - Correct answer-Market Value of Equity + Debt - Cash
Market Capitalization - Correct answer-Price of Stock * Shares Outstanding
How much it would cost to purchase a company - Correct answer-What does the
enterprise value of a stock show?
Price of Stock - Correct answer-how much it costs to purchase a share of stock
Value of Stock - Correct answer-Value of Equity/Shares Outstanding
*Intrinsic Value of Stock
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1