FIN 402 Final Exam Guide For more course tutorials visit www . uophelp . com
FIN 402 Final Exam Guide For more course tutorials visit www . uophelp . 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 third of the square root of the sum of the individual standard deviations .