25 May Question [QUESTION] 1. Which of the following is a true statement?
Question
[QUESTION]
1. Which of the following is a true statement?
a. The risk and return that a firm experienced in the past is also the risk level for its future.
b. Firms can quite possibly change their stocks’ risk level by substantially changing their business.
c. If a firm takes on riskier new projects over time, the firm itself will become less risky.
d. If a firm takes on less risky new projects over time, the firm itself will become more risky.
[QUESTION]
2. This is the average of the possible returns weighted by the likelihood of those returns occurring.
a. efficient return
b. expected return
c. market return
d. required return
[QUESTION]
3. The set of probabilities for all possible occurrences.
a. probability
b. probability distribution
c. stock market bubble
d. market probabilities
[QUESTION]
4. This is typically considered the return on U.S. government bonds and bills and equals the real interest and the expected inflation premium.
a. required return
b. risk-free rate
c. risk premium
d. market risk premium
[QUESTION]
5. This is the reward investors require for taking risk.
a. required return
b. risk-free rate
c. risk premium
d. market risk premium
[QUESTION]
6. This is the reward for taking systematic stock market risk.
a. required return
b. risk-free rate
c. risk premium
d. market risk premium
[QUESTION]
7. This model includes an equation that relates a stock’s required return to an appropriate risk premium:
a. asset pricing
b. behavioral finance
c. beta
d. efficient markets
[QUESTION]
8. The asset pricing theory based on a beta, a measure of market risk.
a. Behavioral Asset Pricing Model
b. Capital Asset Pricing Model
c. Efficient Markets Asset Pricing Model
d. Efficient Market Hypothesis
[QUESTION]
9. In theory, this is a combination of securities that places the portfolio on the efficient frontier and on a line tangent from the risk-free rate.
a. efficient market
b. market portfolio
c. probability distribution
d. stock market bubble
[QUESTION]
10. The use of debt to increase an investment position.
a. behavioral finance
b. financial leverage
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.