For more course tutorials visit
uophelp.com is now newtonhelp.com
www.newtonhelp.com
FIN 402 Investment Fundamentals and Portfolio Management Final Exam Guide
True/False
1.___ ___ The balance sheet shows what assets the firm controls at a point in time and how it financed the assets.
2.___ ___ Free cash flow = Cash flow from operations – Capital expenditures + Disposition of property and equipment.
3.___ ___ The income statement indicates the flow of sales, expenses, and earnings during a period of time.
4.___ ___ Financial ratios are used in stock and bond valuation models.
5.___ ___ A good portfolio is a collection of individually good assets.
6.___ ___ If the covariance of two stocks is positive, these stocks tend to move together over time.
7.___ ___ Increasing the correlation among assets in a portfolio results in an increase in the standard deviation of the portfolio.
8.___ __ In a three asset portfolio the standard deviation of the portfolio is one t