SimplyInvesting Lesson 4 Quiz

Which of these are main variables of the DCF Model?

• Interest Rates

• Free Cash Flow

• Discounted Cash Flow

• Discounted Rate

• Week Number

What is the Purpose of a Portfolio

• To protect investors against inflation

• To reduce the risk an investor undertakes

• To increase the returns an investor earns

• To help decide the investor's investing strategy

How many steps are there to take in building your portfolio

• 2

• 3

• 4

• 5

Which of the below are variables of the Capital Assessment Pricing Model?

• Risk Free Rate

• Economic Risk Premium

• Alpha Value

• Expected Return

Which of the following are part of the selling rules?

• Selling to Take Profits

• Selling to reduce Profits

• Selling based on competition

• Selling based on technicals

• Selling based on fundamentals

Which Companies were mentioned in this Talk?

• Coca Cola

• The Hamburger University

• Sheng Siong

• Netflix

What rules are part of selling based on technicals?

• Change in Trend

• No Change in Trend

• Divergence

• Convergence

What is the definition of the Discounted Cash Flow Model

• The DCF Model aims to calculate the intrinsic value of a company through calculating the present value of all the future cash flow a company generates.

• The DCF Model aims to project the future value of its current cash flow.

• The DCF Model aims to calculate the returns needed to satisfy customers through incorporating Beta Value.

• The DCF Model aims to calculate the intrinsic value of a stock through calculating its total future returns in dividends.

What factors affect your risk tolerance?

• Investing Goal

• Gender

• Age

• Height

• Capital

Which of the following accurately sums up the variables of the Weighted Average Cost of Capital?

• Cost of Debt and Corporate Tax Rate

• Cost of Debt and Cost of Equity

• Cost of Debt, Beta Value, Risk Free Rate, Market Risk Premium, Corporate Tax Rate

• Beta Value, Cost of Capital