Finance chapter 8,9,10 Exam Questions
and Answers Graded A+
The capital asset pricing model provides? - Correct answer-A risk-return trade-off
in which risk is measured in terms of beta.
Beta is a measure of? - Correct answer-The relationship between an investment's
returns and the market return.
Which of the following has a beta of zero?
A) A risk-free asset
B) Gold
C) Apple stocks - Correct answer-Risk-free asset
Which of the following is generally not a characteristic of a bond?
A) Coupons
B) Par Value
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, C) Voting Rights - Correct answer-Voting rights
Which of the following statements about bonds is true? - Correct answer-If market
interest rates change, long-term bonds will fluctuate more in value than short-term
bonds.
Which investor has the right to bankrupt a corporation?
A) Common stockholder
B) Bondholder
C) Both A and B - Correct answer-Bondholder
A security is undervalued in the eyes of an investor if? - Correct answer-The
intrinsic value is greater than the market value.
A decrease in the _________ will cause an increase in common stock value. -
Correct answer-Required rate of return
The type of security which represents ownership in a firm with lowest priority for
payment of dividends or in a bankruptcy is called? - Correct answer-Common
stock
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and Answers Graded A+
The capital asset pricing model provides? - Correct answer-A risk-return trade-off
in which risk is measured in terms of beta.
Beta is a measure of? - Correct answer-The relationship between an investment's
returns and the market return.
Which of the following has a beta of zero?
A) A risk-free asset
B) Gold
C) Apple stocks - Correct answer-Risk-free asset
Which of the following is generally not a characteristic of a bond?
A) Coupons
B) Par Value
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, C) Voting Rights - Correct answer-Voting rights
Which of the following statements about bonds is true? - Correct answer-If market
interest rates change, long-term bonds will fluctuate more in value than short-term
bonds.
Which investor has the right to bankrupt a corporation?
A) Common stockholder
B) Bondholder
C) Both A and B - Correct answer-Bondholder
A security is undervalued in the eyes of an investor if? - Correct answer-The
intrinsic value is greater than the market value.
A decrease in the _________ will cause an increase in common stock value. -
Correct answer-Required rate of return
The type of security which represents ownership in a firm with lowest priority for
payment of dividends or in a bankruptcy is called? - Correct answer-Common
stock
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
