Risk is typically measured:
a. by comparing the size of a firm to other firms operating in the market.
b. by looking at the economic profit that a firm has earned in the past few years.
c. by determining whether the bonds issued by a firm are of high or low value.
d. by comparing how much the stock price fluctuates compared with an average firm.
e. by comparing how much the price of the bond falls whenever the price of a firm's product rises.
d
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Historically, the key role in assisting countries that ran into financial difficulties was played by
A) Europe. B) Japan. C) the IMF. D) the United Nations.
Refer to Figure 4.7. You should definitely not ask for points if you believe that ________ of your classmates have asked for points
A) none B) less than five C) five or more D) between one and three
Everything else held constant, an increase in financial frictions ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
Why do individuals choose to hold part of their wealth in money rather than in other types of assets? Discuss the benefits and costs of holding money