Assignment
In most cases actively managed mutual funds under perform index funds such as the Whilshire 5000, but someone with inside information can significantly out perform an index fund. These facts are consistent with which of the following statements.
Question options:
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The strong form Efficient Market Hypotheses is True |
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The weak form Efficient Market Hypotheses is True |
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The semi-strong form Efficient Market Hypotheses is True |
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The Efficient Market Hypotheses is False in all forms |
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Question 4 |
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0 / 1 point |
Suppose the covariance between the returns of the stock of Poul Inc. and the returns on the Whilshire 5000 is 0.018. If the standard deviation of market returns is 0.013, what is the beta of the stock?
Note: Here the actual numbers rather than percentages are given. So give your answer as an actual number rather than a percentage etc.
Answer:
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106.51 |
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{CO}/{VA} |
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Question 5 |
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0 / 1 point |
Heinlein Corporation is financed with 0.2 percent debt and the rest equity. It has a leveraged beta of 1.5 and is subject to a 0.6 corporate tax rate. What is Heinlein's unleveraged beta?
Answer:
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1.07 |
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{bl} / ( 1 + (1 - {T}) * {wd}/(1-{wd}) ) |
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Question 6 |
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0 / 1 point |
Assume that its trade credit terms are 1/10, net 60 and Mackenzie pays on day 40. Using a 365 day year, what is Mackenzie's Effective Annual Rate (EAR) cost of trade credit?
Answer:
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1.1 |
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(1 + {N}/(100 -{N}))^(365/({DP} -10)) - 1 |
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Question 7 |
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0 / 1 point |
A credit card charges an Annual Percentage Rate (APR) of 0.17 with 12 monthly payments. What is the Effective Annual Rate (EAR) on the credit card?
Answer:
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18.39 |
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(1+{AP}/12)^12 - 1 |
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Question 8 |
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0 / 1 point |
Vogt Corporation has a Beta of 0.5. The U.S. government T-Bill is expected to yield 0.03, and the S&P 500 is expected to yield 0.11 in the near future. What is Vogt's required rate of return?
Answer:
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7 |
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Question 9 |
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0 / 1 point |
A company's cost of debt is 0.04, and its cost of retained earnings is 0.08. If the company is financed only with debt and equity and it equity fraction is 0.7, what is the company's WACC?
Answer:
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8.4 |
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(1 - {ws})*{rd} + {ws}*{rs} |
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Question 11 |
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0 / 1 point |
The economy has been in a recession, but seems to be recovering. Ebeling Inc.'s stock just paid a dividend of $3.3. The company's dividend is expected to grow at a rate of -0.02 this year, 0.02, next year, and 0.06 for every year after that. If Ebeling has a required rate of return of 0.12, what is the current value of Ebeling's the stock?
Answer:
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65.19 |
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{Do}*(1+{g1})/(1+{rs}) + {Do}*(1+{g1})*(1+{g2})/(1+{rs})^2 + ({Do}*(1+{g1})*(1+{g2})*(1+{gc})/({rs} - {gc}))/(1+{rs})^2 |
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Question 12 |
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0 / 1 point |
Anderson Manufacturing has current assets of $180 million, current liabilities of $45, inventory of $50, and cash of $3. What is Anderson's Quick Ratio?
Answer:
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3,999,998.89 |
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({CA} - {In})/ {CL} |
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Question 19 |
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0 / 1 point |
If the Present Value of all estimated futures costs of a 2 year new investment project is 200, and the future value of all expected profits is 1,130, what is the projects MIRR?
Answer:
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182.5 |
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({FV}/{PV})^(1/{N}) -1 |
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Question 20 |
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0 / 1 point |
McAllister Inc sold a 5 year bond 3 years ago with a $70 coupon at par. If the current interest rate demanded by the market is 0.16, what is the present value of the bond today? The bond has a par value of $1,000.
Answer:
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988.55 |
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{C}/(1+{r}) + ({C} + 1000)/(1+{r})^2 |
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Attempt Score: 9 / 20 - 45 % |
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Overall Grade (highest attempt): 9 / 20 - 45 % |
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Done