Review Test Submission: Exam 2
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Course 1171 - FIN6406 - Corporate Finance - Sections
Test Exam 2
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Attempt Score 30 out of 30 points
Time Elapsed 1 hour, 46 minutes out of 2 hours
Results Submitted Answers, Incorrectly Answered Questions
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Question 1 1 out of 1 points
A stock is expected to pay a year-end dividend of $2.00, i.e., D1 = $2.00. The
dividend is expected to decline at a rate of 5% a year forever (g =-5%). If the
company is in equilibrium and its expected and required rate of return is 15%, which
of the following statements is CORRECT?
Selected Answer: The company's expected stock price at the beginning of next year is
$9.50.
Question 2 1 out of 1 points
Which is the best measure of risk for a single asset held in isolation, and which is
the best measure for an asset held in a diversified portfolio?
Selected Answer: Coefficient of variation; beta.
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8
, Question 3 1 out of 1 points
Page 1 of
8
User
Course 1171 - FIN6406 - Corporate Finance - Sections
Test Exam 2
Started
Submitte
d Status
Complete
d
Attempt Score 30 out of 30 points
Time Elapsed 1 hour, 46 minutes out of 2 hours
Results Submitted Answers, Incorrectly Answered Questions
Displaye
d
Question 1 1 out of 1 points
A stock is expected to pay a year-end dividend of $2.00, i.e., D1 = $2.00. The
dividend is expected to decline at a rate of 5% a year forever (g =-5%). If the
company is in equilibrium and its expected and required rate of return is 15%, which
of the following statements is CORRECT?
Selected Answer: The company's expected stock price at the beginning of next year is
$9.50.
Question 2 1 out of 1 points
Which is the best measure of risk for a single asset held in isolation, and which is
the best measure for an asset held in a diversified portfolio?
Selected Answer: Coefficient of variation; beta.
Page 1 of
8
, Question 3 1 out of 1 points
Page 1 of
8
