Finance I Final Exam 2022

Finance I Final Exam 2022 Read carefully the following instructions Except for those students with special needs, your time to complete the exam finishes at 19:00. The exam is obviously individual and thus, no collaboration is permitted. The only windows you can have open are for Exia and Excel. Do not upload any file in Exia while doing your exam. All questions are worth 5 points for a total of 100 points. Questions 7 and 8 are graded on a 0-5 scale whereas the other questions will result in either 0 or 5 points. For technical assistance or clarifications regarding the exam content, reach out to the invigilator. If you do not want your exam to be assessed, choose the alternative "hand in blank" when submitting. Good luck! (Not that it is assumed that you need it!) Finance I Final Exam -01-15 3 1. Sustainability Which one of the following statements is FALSE? Svar: High ESG scores positively affect firm value. 4 Finance I Final Exam -01-15 Poäng: 0 Kommentar: 2. Investment decision rules Which statement is FALSE? Svar: The IRR rule does not always lead to the correct investment decision Finance I Final Exam -01-15 5 Poäng: 0 Kommentar: 3. Portfolio Theory and Risk You are a risk-averse investor considering investing in one of two economies. The expected return and standard deviation of all stocks in both economies is the same. In the first one, all stocks move together –in good times all prices go up and in bad times they all fall together. In the second economy, stock returns do not move together at all. What economy would you prefer to live in as an investor? 6 Finance I Final Exam -01-15 Svar: You choose the economy in which stock returns move together because your portfolios will have lower standard deviations