If Widget Corp. has a PEG value of .5, the stock is most likely : Question 15 op
ID: 2767116 • Letter: I
Question
If Widget Corp. has a PEG value of .5, the stock is most likely:
Question 15 options:
undervalued based on its projected growth rate.
overvalued based on its projected growth rate.
overvalued based on its $0.50 per share dividend.
overvalued based on its good historical earnings.
undervalued based on its poor historical earnings.
Which one of these is not an example of systematic risk?
Question 4 options:
Recession
Inflation
Political upheaval such as war
Decline in the auto industry
Decline in national economy
Sean Barber wants to invest in a stock that is relatively safe, suitable for conservative investors, and less speculative than other stocks. What type of stock best fits Sean's requirements?
Question 14 options:
Midcap stock
Cyclical stock
Small-cap stock
Blue-chip stock
Growth stock
undervalued based on its projected growth rate.
overvalued based on its projected growth rate.
overvalued based on its $0.50 per share dividend.
overvalued based on its good historical earnings.
undervalued based on its poor historical earnings.
Which one of these is not an example of systematic risk?
Question 4 options:
Recession
Inflation
Political upheaval such as war
Decline in the auto industry
Decline in national economy
Sean Barber wants to invest in a stock that is relatively safe, suitable for conservative investors, and less speculative than other stocks. What type of stock best fits Sean's requirements?
Question 14 options:
Midcap stock
Cyclical stock
Small-cap stock
Blue-chip stock
Growth stock
Explanation / Answer
Question 15: If Widget Corp. has a PEG value of .5, the stock is most likely:
answer - (a)undervalued based on its projected growth rate.
If the PEG is less than 1, then the stock is undervalued and if PEG is more than 1, then it is ovevalued. Since PEG is 0.5. it is undevalued
Question 4: Which one of these is not an example of systematic risk?
Answer: Deline in auto industry.
Since auto industry is specific to that industry and does not affect the entire market, it is not a systematic risk
Question 14:Sean Barber wants to invest in a stock that is relatively safe, suitable for conservative investors, and less speculative than other stocks. What type of stock best fits Sean's requirements?
Answer: Blue-chip stock. These are large stable companies suitable for conservative investors
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