The beta of the market Select one: a. is 1. b. is greater than 1 . c. is less than 1. d. cannot be
determined. Combining two negatively correlated assets to roduce is known as Seloct one: a. risk
and liquidation. b. risk and diversitication. c. profit and valuation. d. profit and risk aversion.
Accessibility: InvestigateIt a person's required return does not chango when rikk increases, thot
pertion is said to the a, risk-seoking b. risk-aware c. risk-indifferent d. fisk-ovetse It a 10 -yeor, 8
percent coupon, stooo par volue corporate bond is seling at 54150 (assuming tax-deductibility of
interest poyments with a morginal taxiate of 40 porcont). then ite annuot opproximote ofter-tax cott
of debt is Solect ono: a 6 percent. b. 11.5 percent e. 3.6 percent a. 8 percent.investment A
guorantees its holder $100 return. Investment 8 earns $0 or $200 with equal chances (ie, an
average of $100 ) over the same period. Both investments have equal risk Select one: True
FolseWhat is the rate of retum on an investment of $16,278 if the company expects to recoive $3,
000 per year for the next 10 years? Select one: a. 8 percent b. 18 percent c. 3 percent d. 13
percent If a stock has a higher than 1.5 Beta value, then you can say that this stock is Solect one:
a. widely held by investors b. safer than the market average c. in an industry with good prospects
d. riskier than the market average.
The beta of the market Select one a is 1 b is greater th.pdf
1. The beta of the market Select one: a. is 1. b. is greater than 1 . c. is less than 1. d. cannot be
determined. Combining two negatively correlated assets to roduce is known as Seloct one: a. risk
and liquidation. b. risk and diversitication. c. profit and valuation. d. profit and risk aversion.
Accessibility: InvestigateIt a person's required return does not chango when rikk increases, thot
pertion is said to the a, risk-seoking b. risk-aware c. risk-indifferent d. fisk-ovetse It a 10 -yeor, 8
percent coupon, stooo par volue corporate bond is seling at 54150 (assuming tax-deductibility of
interest poyments with a morginal taxiate of 40 porcont). then ite annuot opproximote ofter-tax cott
of debt is Solect ono: a 6 percent. b. 11.5 percent e. 3.6 percent a. 8 percent.investment A
guorantees its holder $100 return. Investment 8 earns $0 or $200 with equal chances (ie, an
average of $100 ) over the same period. Both investments have equal risk Select one: True
FolseWhat is the rate of retum on an investment of $16,278 if the company expects to recoive $3,
000 per year for the next 10 years? Select one: a. 8 percent b. 18 percent c. 3 percent d. 13
percent If a stock has a higher than 1.5 Beta value, then you can say that this stock is Solect one:
a. widely held by investors b. safer than the market average c. in an industry with good prospects
d. riskier than the market average
