Considered logical explanation

Assignment Help Financial Management

Reference no: EM131882517

1. From 2014 to 2016, stock prices rose 50%. Which of the following would be considered a logical explanation?

a) Lower market risk premiums

b) Higher growth rates

c) Lower risk free rates

d) All of the above are logical explanations

2. In order to reduce the risk of a portfolio, you would want to combine stocks with ______________.

a) The risk free rate

b) Low Standard Deviations

c) The market portfolio

d) Low Correlation Coefficients

3. Which of the following tends to increase the power of small, outside shareholders?

a) Cumulative voting

b) Founders Shares

c) Staggered Boards

d) Supermajority voting

4. You’d want to buy a stock if______________.

a) It had a positive Jensen’s Alpha.

b) Its required return is lower than its expected return.

c) Its price were less than its value

d) All of the above are characteristics of stocks you’d want to buy.

5. The Capital Asset Pricing Model makes all of these assumptions except ____________?

a) Investors hold a widely diversified portfolio like the market portfolio

b) That there are no taxes or transaction costs

c) Investors can borrow and lend at the risk-free rate

d) All of these are assumptions of the CAPM

Reference no: EM131882517

Questions Cloud

Discuss the common core state standards for english : You are an elementary school principal who is committed to ensuring that students are taught in a developmentally appropriate environment.

Interest for goble and colleagues : Again, the key variable of interest for Goble and his colleagues was athletes' balance which was measured as the number of centimeters of sway over the course o

Calculate the amount of each equal quarterly deposit : Calculate the amount of each equal quarterly deposit that Tony must make in order to have $506,354 in his account in five years

Explain the role of attention for the successful processing : In terms of processing information from the physical world (i.e., the stimulus) to storing information in long-term memory, explain the role of attention.

Considered logical explanation : Which of the following tends to increase the power of small, outside shareholders? Which of the following would be considered a logical explanation?

Interpret the results of the data analysis : Summarize your findings. Interpret the results of the data analysis. Summarize the findings and limitations of your research.

Symptom of grandiosity or inflated self-esteem : If yes, please explain and provide an example as to when the symptom of "grandiosity or inflated self-esteem" occurs during Ian's manic episode.

Discuss the overlapping nature of religious faith and money : Discuss the overlapping nature of religious faith and money in Major Barbara.(VIRG WOLF)Read "Major Barbara" at the back drop ofVictorian society.

Calculate the amount of cash receipts for august : Cash payment in month following purchase 40%. Calculate the amount of cash receipts for August, September and October

User Account

All Pages