Finance Quiz 2

The underlying assumption of the dividend growth model is that a stock is worth:

The value of common stock today depends on:

The constant dividend growth model is:

The slope of an asset's security market line is the:

Risk that affects a large number of assets, each to a greater or lesser degree, is called _____ risk.

The standard deviation of a portfolio will tend to increase when:

A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the _____ distribution.

The excess return required from a risky asset over that required from a risk-free asset is called the:

The risk premium is computed by

The relationship between nominal rates, real rates, and inflation is known as the:

The percentage of a portfolio's total value invested in a particular asset is called that asset's:

The stated interest payment, in dollars, made on a bond each period is called the bond's:

All else constant, a bond will sell at _____ when the yield to maturity is _____ the coupon rate.

Assume that you are using the dividend growth model to value stocks. If you expect the market rate of return to increase across the board on all equity securities, then you should also expect the:

The rate of return required by investors in the market for owning a bond is called the: