True about the private investors

Assignment Help Financial Management

Reference no: EM131899620

1. Which of following is true about the private investors?

a. In a private-to-public transaction, market beta has to be scaled up to capture the risk exposure of investors.

b. In a private-to-private transaction, market beta has to be scaled down to capture the higher risk-aversion of the undiversified investor.

c. Undiversified investors require a higher rate of return from the same investment, leading to a lower value of the investment.

d. Undiversified investors view the same investments less risky than more diversified investors.

2. Can a share of common stock be outstanding but not authorized or? issued?

A. No. Outstanding shares have been authorized and issued.

B. No. The authorized shares have to be voted on by the outstanding shareholders.

C. Yes. The outstanding shares represent the total number of shares the company has available.

D. Yes. The shares are issued when voted by the board of directors at the annual shareholders meeting.

Reference no: EM131899620

Questions Cloud

Perform a search on the topic computer privacy : Using an Internet Web browser, perform a search on the topic Computer Privacy. Examine five Web sites and summarize the information they provide.

Strengths and limitations of viewing psychopathology : What are some of the strengths and limitations of viewing psychopathology as statistical deviance within a population?

How much did you make or lose on the options : Assume you closed out your position when the stock was trading at $61.48 per share. How much did you make or lose on the options?

Key features of a surveillance system : Define surveillance and identify the key features of a surveillance system;

True about the private investors : Which of following is true about the private investors? Can a share of common stock be outstanding but not authorized or? issued?

Draw crisis communication plan for multinational corporation : In his "veil of ignorance" mode, Rawls said negotiators have "general" knowledge about how the world works and yet are ignorant about their personal.

What is the us plan for securing cyberspace : What is the U.S. plan for securing cyberspace? Why is it important for IT auditors to know about the legal environment of IS?

What problems has the computer security act encountered : What is the Computer Security Act? Who does it impact? What problems has the act encountered? What is the Privacy Act? What does it protect?

Calculate betty productivity for last week : Vanessa now wants to compare productivity across periods. She sees that Betty the brownie baker worked 50 hours this week and baked 205 brownies.

User Account

All Pages