FINA 3315 EXAM 1 CORE CORPORATE
FINANCE CONCEPTS REVIEW 2026
◉ Aria has heard a rumor that a major food company will be forced
to recall millions of jars of peanut butter. due to contamination If the
rumors are true, the company's stock price will decline sharply.
Which one of the following strategies would allow Jennifer to earn a
profit if the rumor proves to be true.
Answer: C. Sell the stock short today.
◉ Table 1
AB
1 Year Cash Flow
2 1 $(5,000)
3 2 $4,000
4 3 $3,000
Given a spreadsheet similar to the one shown in Table 1, the
command to compute the internal rate of return would be.
Answer: B. =IRR(B2:B4)
◉ Which one of the following can be considered a pitfall for
investors new to on − line trading?.
, Answer: C. On − line investors tend to trade too frequently.
◉ The Sarbanes − Oxley Act of 2002 focuses on.
Answer: B. accounting and other public disclosures of information.
◉ Short − term securities are bought and sold in the.
Answer: A. money market.
◉ In the real world, most of the assets available to investors.
Answer: A. tend to be somewhat positively correlated.
◉ Investment bankers who join together to share the financial risk
associated with buying an entire issue of new securities and
reselling them to the public is called a(n).
Answer: . B. underwriting syndicate.
◉ Which of the following is usually available on a companies
website?.
Answer: B. annual reports
◉ The beta of the market is.
Answer: 1.0
FINANCE CONCEPTS REVIEW 2026
◉ Aria has heard a rumor that a major food company will be forced
to recall millions of jars of peanut butter. due to contamination If the
rumors are true, the company's stock price will decline sharply.
Which one of the following strategies would allow Jennifer to earn a
profit if the rumor proves to be true.
Answer: C. Sell the stock short today.
◉ Table 1
AB
1 Year Cash Flow
2 1 $(5,000)
3 2 $4,000
4 3 $3,000
Given a spreadsheet similar to the one shown in Table 1, the
command to compute the internal rate of return would be.
Answer: B. =IRR(B2:B4)
◉ Which one of the following can be considered a pitfall for
investors new to on − line trading?.
, Answer: C. On − line investors tend to trade too frequently.
◉ The Sarbanes − Oxley Act of 2002 focuses on.
Answer: B. accounting and other public disclosures of information.
◉ Short − term securities are bought and sold in the.
Answer: A. money market.
◉ In the real world, most of the assets available to investors.
Answer: A. tend to be somewhat positively correlated.
◉ Investment bankers who join together to share the financial risk
associated with buying an entire issue of new securities and
reselling them to the public is called a(n).
Answer: . B. underwriting syndicate.
◉ Which of the following is usually available on a companies
website?.
Answer: B. annual reports
◉ The beta of the market is.
Answer: 1.0
