The difference between the expected (or required) return for the market portfolio and the risk-free rate of return is referred to as:
A) beta.
B) the geometric mean.
C) the market risk premium.
D) the arithmetic mean.
Answer: C
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Functional depreciation occurs when a fixed asset is no longer able to provide services at the level for which it wasintended
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to be a mismatch?
a. High cost and high quality b. High customer service and high cost c. Low cost and high quality d. Low cost and low customer service
If a contract or contract clause is found to be unconscionable, the courts can do which of the
following? A) Refuse to enforce only the unconscionable portion B) Refuse to enforce the contract C) Limit the application of the unconscionable portion D) A, B, and C E) B and C only
Which of the following statements is CORRECT?
A. On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss. B. On an expected yield basis, the expected current yield will always be positive because an investor would not purchase a bond that is not expected to pay any cash coupon interest. C. If a coupon bond is selling at par, its current yield equals its yield to maturity. D. The current yield on Bond A exceeds the current yield on Bond B; therefore, Bond A must have a higher yield to maturity than Bond B. E. If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity.