Causes specific risk, Which of the following causes

Causes specific risk

Assignment Help Financial Management

Reference no: EM132061050

1. Suppose that I know the mean historical returns for a company's stock and I know the standard deviation of those returns. The standard deviation indicates

a. whether the company has paid dividends or not

b. how profitable the company has been

c. the risk associated with the stock

d. the liquidity of the company

2. Which of the following causes specific risk?

a. a terrorist attack

b. conflict in the middle east

c. Galaxy cell phones catch on fire due to a defect in the battery

d. The Fed raises interest rates

Reference no: EM132061050

Questions Cloud

Evaluate capital budgeting project : A start up company might use the payback period, rather than NPV, to evaluate capital budgeting project because

Which is an example of typical capital budgeting project : Which is an example of a typical capital budgeting project that a company might undertake?

True of bondholders as opposed to stockhoders : Which of the following is true of bondholders as opposed to stockhoders?

Diversification is useful to manage : We can most correctly say that diversification is useful to manage ___ risk

Causes specific risk : Which of the following causes specific risk?

An investor is considering purchasing starbucks bond : An investor is considering purchasing a Starbucks bond. If the investor decides to buy the bond today, how much will she pay, in dollars?

Purchase equipment in order to produce the goods : A firm is introducing a new line of fashion merchandise and needs to purchase equipment in order to produce the goods.

Briefly tell bill about each of those four objectives : Briefly tell Bill about each of those four objectives and why these objectives are so important.

What is the investor required rate of return on the stock : Based on the CAPM, what is the investor’s required rate of return on the stock?

User Account

All Pages