[Solved] Assignment 219371

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Subject: Business    / Finance
QuestionIf ATT’s 8% coupon bonds maturing in 2015 are selling for 103% of the par value, the yield to maturity of this issue must be higher than 8%.TrueFalse1 pointsQUESTION 2Fundamental analysis is the research to forecast the movements in the prices of securities based on trends and patterns in past prices.TrueFalse1 pointsQUESTION 3The efficient market hypothesis says that at any time the security price fully reflects all the information, so the price changes are not predictable.TrueFalse1 pointsQUESTION 4The possible conflict of interest between stockholders and managers of a corporation is called the .asymmetric information problemagency problemnonsystematic risk problemproxy fight1 pointsQUESTION 5____________ is a computerized trading network, where they match buy and sell orders that are entered electronically by customers.NASDAQElectronic communications networkOTCThird Market1 pointsQUESTION 6________ are the markets in which corporations raise new capital.Money marketsMortgage marketsPrimary marketsSecondary markets1 pointsQUESTION 7________ are the markets for short-term debts.Capital marketsMoney marketsSecondary marketsMortgage markets1 pointsQUESTION 8A premium added to the equilibrium interest rate on a security if the security cannot be converted to cash on short notice is called ________.interest rate risk premiumliquidity premiummaturity risk premiumdefault risk premium1 pointsQUESTION 9The relationship between yields and maturities of securities is called ________.liquidity preference theorymarket segmentation theorythe term structure of interest ratesthe interest rate risk1 pointsQUESTION 10The ________ of a security measures the sensitivity of the security with respect to the market portfolio.betacoefficient of variationstandard deviationexpected return1 pointsQUESTION 11The beta of the market portfolio is ________.zeroonebetween 0 and 1between 1 and 2

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