Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

MGMT 211 Business Finance course a T have to, it\'s a cone coue b I love account

ID: 2799600 • Letter: M

Question

MGMT 211 Business Finance course a T have to, it's a cone coue b I love accounting and finance C There is no event that would canse meto enll What coue 11. Overthe past 75 years, we have chened nethe, withthe highest average anmeal neturns also tend to have the highest standand devitions of al retm This observation supports the notion that there is a positive comelation netum. Which of the following optionscorrectly ranks investments from highes o lwt risk (and retarm), where the security with the highest risk is shown finst, the one with the lowest risk last? between risk and povernment bonds, Treasury hills government bhonds, Treasury bills y socks, small-company stocks, lonmcpore bod long government bonds. Treasury hills 2 Which of the following statements is comect? b The stock valuation model, P Dils,-g can be used fo im that have expectied c. The price of a stock is the present value of all expected future dividends, discounted d ne constant powth model cannot be used for a zero growth ,where the Growth stocks ssually have nelatively high payout negative, bui const -growth rates. at the dividend growth rate dividend is expected to remain constant over time

Explanation / Answer

10- I love accounting and finance

11. c

This is because smaller company stocks have the highest risk, followed by large company stocks. Company bonds have lesser risk as they carry fixed rate of interest. Government bonds and treasury bills are risk free.

12. b

The dividend growth model can be used for calculating the value of stocks with negative growth rate also.Only difference here will be that they will be discounted at a higher rate than the expected return on stock.