Triple X Company recently paid a $3 annual dividend. The company is projecting that its dividends...

Triple X Company recently paid a $3 annual dividend. The company is projecting that its dividends will grow by 20 percent next 2 years, 10 percent annually for the following year after that, and then at 5 percent annually thereafter. Based on this information, how much should Triple X's common stock sell for today if her required return is 12%?

ETFs allow investors to do which of the following…

A) Go short a specific market sector

B) Employ leverage to a specific market sector

C) Protect their portfolio against inflation

D) Profit when interest rates rise

E) All of the above

  1. Investors like ETFs becuase they offer…

    A) Transparency

    B) Low expense ratios

    C) Diversity of holdings

    D) Ease of trade

    E) All of the above

    F) None of the above

Homework Answers

Answer #1

ETF'S allow us to buy on margin and also trade short . The interest rate ETF, rise when profits are falling. Some portfolios managed by the ETF have exposure to inflation linked bonds hence they protect against inflation.

So, the correct option is E, all of the above.

ETF's provides diversification benefits, they help us hold diverse holdings in the ETF. Since. ETF'S are passively managed, they have lower expense ratios. the expense ratio is low, which is beneficial to investors , it provides better transparency than the mutual funds. Since, ETF mimics the benchmark like S&P hence the expense ratio is low , the mutual funds is meant to beat the benchmark.

So, the correct option is All of the above that is option E.

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