Text Quiz: Module 5 - Financial Markets and Securities Analysis by R. Dennis Middlemist, Quizzes of Finance

Download Text Quiz: Module 5 - Financial Markets and Securities Analysis by R. Dennis Middlemist and more Quizzes Finance in PDF only on Docsity! Module 5: Text Quiz Name: R Dennis Middlemist (Preview) Start time: July 30, 2007 10:16am Time allowed: 20 minutes Number of questions: 6 Finish Help Question 1 (2 points) Assuming g will remain constant, the dividend yield is a good measure of the required return on a common stock under which of the following circumstances? Save answer a. g = 0 b. g > 0 c. g < 0 d. Under no circumstances e. Both a and b are correct Question 2 (2 points) Regardless of the size of the coupon payment, the price of a bond moves in the opposite direction from interest rate movements. For example, if interest rates rise, bond prices fall. Save answer a. True b. False Question 3 (2 points) If a bond is callable, and if interest rates in the economy decline, then the company can sell a new issue of low- interest-rate bonds and use the proceeds to "call" the old bonds in and have effectively refinanced at a lower rate. Save answer a. True b. False Question 4 (2 points) According to the efficient markets hypothesis (EMH), which form of market efficiency states that all publicly available information, past and present, is already included in the price of financial assets? Save answer a. Weak form b. Semi-strong form c. Strong form d. None of the above because the financial markets cannot be efficient Question 5 (2 points) Page 1 of 2WebCT Quiz 7/30/2007http://webct.colostate.edu/SCRIPT/BF305Middlemist_F07/scripts/student/serve_new_quiz...