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FINA 3315 EXAM 1 2026
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
Diversifiable risk is also called systematic risk.
False
The effects of fluctuating foreign exchange rates may
I and II only
A portfolio with a beta of 1.26
is considerably more risky than the overall market.
Which of the following will affect the firm's future cash
flows?
I. state of the economy
II. state of the industry
III. the firm's recent and current earnings
IV. new products in the firm's pipeline
I, II, and IV only
Which one of the following is is most likely to increase the
price of a stock?
rapid growth in earnings
The required rate of return denotes the minimum rate of
return an investor should expect.
true
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A holding period return is calculated by adding the current
income to the capital gains and dividing this sum by the
beginning investment value
Historically speaking, the standard deviation of returns on
U.S. Treasury Bills is zero.
false
Over the long term, which one of the following has
historically had the lowest risk and lowest average annual
rate of
return?
long term government bonds
When the stock market has bottomed out and is beginning
to recover, the best portfolio to own is the one with a beta
of
+2.0
Investing globally offers better diversification than
investing only domestically.
True
Which one of the following statements about the NYSE is
correct?
Buy orders are filled at the lowest price and sell orders are filled
at the highest price.
Beta measures diversifiable risk while standard deviation
measures systematic risk.
false
If a stock is purchased at the beginning of a year, a single
dividend is paid at the end of the year and the stock is sold
FINA 3315 EXAM 1 2026
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
Diversifiable risk is also called systematic risk.
False
The effects of fluctuating foreign exchange rates may
I and II only
A portfolio with a beta of 1.26
is considerably more risky than the overall market.
Which of the following will affect the firm's future cash
flows?
I. state of the economy
II. state of the industry
III. the firm's recent and current earnings
IV. new products in the firm's pipeline
I, II, and IV only
Which one of the following is is most likely to increase the
price of a stock?
rapid growth in earnings
The required rate of return denotes the minimum rate of
return an investor should expect.
true
, Page | 2
A holding period return is calculated by adding the current
income to the capital gains and dividing this sum by the
beginning investment value
Historically speaking, the standard deviation of returns on
U.S. Treasury Bills is zero.
false
Over the long term, which one of the following has
historically had the lowest risk and lowest average annual
rate of
return?
long term government bonds
When the stock market has bottomed out and is beginning
to recover, the best portfolio to own is the one with a beta
of
+2.0
Investing globally offers better diversification than
investing only domestically.
True
Which one of the following statements about the NYSE is
correct?
Buy orders are filled at the lowest price and sell orders are filled
at the highest price.
Beta measures diversifiable risk while standard deviation
measures systematic risk.
false
If a stock is purchased at the beginning of a year, a single
dividend is paid at the end of the year and the stock is sold
