Answer the following statement(s) true (T) or false (F)
1. Investors make money off stocks through capital gains and dividends.
2. Coca-Cola and General Electric are both blue-chip stocks.
3. Stocks issued by lage, well-capitalized companies are called blue-chip stocks.
4. Blue-chip stocks are stocks that have been identified by Merrill Lynch as fast-growing can’t miss stocks.
5. Generally speaking, the higher the risk of a security, the higher its rate of return.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. TRUE
You might also like to view...
Above-average earnings is often the basis for the calculation of goodwill
Indicate whether the statement is true or false
U.S. GAAP requires firms to disclose which of the following information with respect to derivatives?
a. A description of the firm's risk management strategy and how particular derivatives help accomplish the firm's hedging objectives. b. For fair value and cash flow hedges, firms must disclose the net gain or loss recognized in earnings resulting from the hedge's ineffectiveness. c. For cash flow hedges, firms must describe the transactions or events that will result in reclassifying gains and losses from accumulated other comprehensive income to net income and the estimated amount of such reclassifications during the next 12 months. d. The net amount of gains and losses recognized in earnings because a hedged firm commitment no longer qualifies as a fair value hedge or a hedged forecasted transaction no longer qualifies as a cash flow hedge. e. all of the above
An integral part of the managerial process of crafting and executing strategy includes
A. communicating the company's values and code of conduct to all employees. B. deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage. C. developing a strategic vision. D. developing a proven business model. E. deciding on the company's strategic intent.
Cheryl buys a life insurance policy with a two-year incontestable clause, and dies three years later. When she dies, her insurer discovers that she lied on application for coverage about her diabetes. What will happen?
A) The insurer will pay the claim. B) The insurer will void the policy and not pay the claim because Cheryl made a material misrepresentation on her application. C) The insurer will void the policy and not pay the claim based on the principle of indemnity. D) Both B and C above