Drama, Film, and Mass Communication homework help
Drama, Film, and Mass Communication homework help. According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the length of the he or she plans to hold the stockTrue or FalseVariance is a measure of the variability of returns, and since it involves squaring the deviation of each actual return from the expected return, it is always larger than its square root, its standard deviationTrue or FalseJunk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength.True or FalseA bond has a $1,000 par value, makes annual interest payments of $100, has 5 years to maturity, cannot be called, and is not expected to default. The bond should sell at a premium if market interest rates are below 10% and at a discount if interest rates are greater than 10%True or FalseAccording to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual stocks held in isolation. Thus, the relevant risk of a stock is the stock’s contribution to the riskiness of a well-diversified portfolio.True or False