After doing analysis, an investor with a bearish attitude would be inclined to buy shares only as part of a short cover. Group of answer choices True False
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After doing analysis, an investor with a bearish attitude would be inclined to buy shares only as part of a short cover.
Group of answer choices
True
False
Step by step
Solved in 3 steps
- which of the following statements is true? Select one: Investors sell a stock when required return is less than expected return and buy a stock when required return above expected return None of the answers are correct Investors buy a stock when it is under-valued and sell it when it is over-valued Investors sell a stock when it is under-valued and buy it when it is over-valued.If an investor believes that the expected return is lower than the required rate of the return, the stock should be and he should . Group of answer choices overvalued, buy the stock. undervalued, not buy the stock overvalued, not buy the stock undervalued, buy the stock.If a given investor believes that a stock’s expected return exceeds its required return, then the investor most likely believes that the stock is not a good buy. True or False
- Since investors tend to dislike risk and like certainty, the more volatile a stock, the less valuable will be an option to purchase the stock, other things held constant. Group of answer choices True FalseWhich of the following statement(s) is(are) TRUE? (i) The valuation price of a stock primarily depends on expected future dividends to its shareholders and its required rate of return. (ii) An investor who intends to sell a stock after holding it for a short period will forgo all future dividends, thus will be willing to pay for a lower price for the stock compared to another investor who prefers to hold the share for a longer period. (iii) The valuation share price is positively related to the share's required rate of return.If you want to buy a particular stock but are worried thatdemand from investors could push the price to an unreasonably high level before yourorder is executed, what type of order would you specify? Why?
- When purchasing shares is it preferrable to purchase in anticipation of appreciation or of dividends? Do certain investors have different needs?How do you determine if a stock is over-valued? What does that mean? If a willing buyer and a willing seller agree to buy/sell a share of stock, who can say if the share is over-valued? What are some of the traditional tools to determine if a stock is over-valued or under-valued?If the bid fails in a hostile tender offer, what impact will it have on the market price? A. Market price falls because the minority owner was unable to complete the offer B. Market price stays the same because it is apparent that no one wants to buy the stock C. Market price increases because the minority owner has signaled to the market that shares are worth more D. None of the above
- Your professor finds a stock-trading rule that generates excess risk-adjusted returns. Instead of publishing the results, she keeps the trading rule to herself. This is most closely associated with A. insider trading. B. regret avoidance. C. selection bias. D. framing.The disposition effect: a. Is the tendency of stock investors to sell their winning stocks and hold onto their losing stocks b. Is consistent with regret avoidance behaviour c. Is a consequence of investors’ preference for lottery-type stocks d. (a) & (b) e. (a), (b) & (c)The buyer of a call option on stock benefits if the underlying stock price rises or if the volatility of the stock's price increases. Select one: True False