Question

If you expect the market to increase which of the following
portfolios should you purchase?

Select one:

a. a portfolio with a beta of 1.0

b. a portfolio with a beta of 0

c. a portfolio with a beta of -0.5

d. a portfolio with a beta of 1.9

A firm is evaluating an investment proposal which has an initial
investment of $5,000 and cash flows presently valued at $4,000. The
net present value of the investment is ______.

Select one:

a. $9,000

b. -$4,000

c. -$1,000

d. $4,000

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Thank's

Abdul-Rahim Taysir

Answer #1

1st Answer:

The correct option is "d"

when you are expecting the market to increase, so you should buy a portfolio whose beta with the market is high. The portfolio with 1.9beta means that if the market increases by 1 then the portfolio will increase by 1.9times.

2nd Answer:

The correct option is "c"

Net Present value = Present value of cash flow to be received - Initial Investment

= 4000 - 5000

= -1000

it shows that the investment is more than what the project will produce.

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If you expect the market to increase which of the following
portfolios should you purchase?
Select one:
a. a portfolio with a beta of 1.0
b. a portfolio with a beta of 0
c. a portfolio with a beta of -0.5
d. a portfolio with a beta of 1.9
A firm is evaluating an investment proposal which has an initial
investment of $5,000 and cash flows presently valued at $4,000. The
net present value of the investment is ______.
Select...

How much it is easy or difficult for a manager to increase the
price by 1%?
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ALL OF THE BELOW ARE TRUE ABOUT INTERNAL RATE OF RETURN
EXCEPT
Select one:
a. ACCEPT THE PROJECT IF IRR IS LESS THAN THE DISCOUNT RATE
b. NPV EQUAL ZERO
c. ACCEPT THE PROJECT IF IRR IS HIGHER THAN THE DISCOUNT RATE
d. IRR IS A WAY TO EVALUATE THE ACCEPTANCE OF A PROJECT
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MERNA Company reported net income of $30,000; depreciation
expenses of $19,000; an increase in Accounts Payable of $2,000; and
an increase in current notes receivable of $3,000. Net Cash Flows
from operating activities under the indirect method is:
Select one:
a. $49,000.
b. $50,000.
c. $44,000.
d. $48,000.
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What is the difference of the future amounts of the annuity due
and ordinary annuity for regular quarterly payments of 14000 at 14%
compounded quarterly.
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You are given the following information. What is the initial
cash outflow?
Purchase and installation of new equipment $12,000
The sale price of replaced equipment $ 4,000
Book value of replaced equipment $ 3,000
When the new equipment is installed:
Inventory increase $ 2,000
Accounts payable decrease $ 1,000
TAXES 40%
IN YOUR ANSWER DO NOT USE WORDS JUST NUMBERS SUCH AS 000,000
000000
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increased $46,000 due to a cash purchase, cash dividends of $42,000
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statement of cash flows (indirect method), Net cash used by
financing activities is:
Select one:
a. ($88,000).
b. ($112,000).
c. ($154,000).
d. ($158,000).
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Abdul-Rahim Taysir

During the year, ABC Corporation's Treasury Stock account
increased $46,000 due to a cash purchase, cash dividends of $42,000
were paid and the company reported net income of $200,000. On the
statement of cash flows (indirect method), Net cash used by
financing activities is:
Select one:
a. ($88,000).
b. ($112,000).
c. ($154,000).
d. ($158,000).
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Abdul-Rahim Taysir

You are planning to buy Apple stock. and you expect it to pay a
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You expect to sell the stock for $100 in 3 years. If your required
return for purchasing the stock is 12 percent, how much would you
pay for the stock today?
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OMAR Company. reported net income of $53,000; depreciation
expenses of $11,000; a gain on a land sale of $3,000; and a
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Select one:
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