Question 1 2 points Save The book value of a firm equals the present value of fu

Question

  Question 1 2 points   Save   The book value of a firm equals the present value of future cash flows from all of that firm's securities. True False The book value of a firm equals the present value of future cash flows from all of that firm's securities. Which of the following is/are true: The risk-return relationship for each financial asset is shown on: If market interest rates rise: Many preferred stocks have a feature that requires a firm to periodically set aside an amount of money for the retirement of its preferred stock. What is the name of this feature? Assume that you have $100,000 invested in a stock whose beta is .85, $200,000 invested in a stock whose beta is 1.05, and $300,000 invested in a stock whose beta is 1.25. What is the beta of your portfolio? A disadvantage of junk bonds is that they do not provide a coupon payment, and only make a par value payment at maturity.

Explanation / Answer

1. False

2. All the above are true

3.The capital market line

4. Long-term bonds will rise in value more than short-term bonds.

5.Sinking fund

6.Beta of portfolio= 1.12

7.True

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