Which statement is true regarding overconfidence?
A) Overconfidence leads to trading too often.
B) Overconfidence afflicts women more often than men, and it also leads women to trade too often.
C) Overconfident investors think they can beat the market.
D) Both A and C
Answer: D
You might also like to view...
Angela is part of a cohort of employees who regularly attend seminars on improving leadership and decision-making skills. The members of the cohort mentor one another. The meetings do not apply to Angela’s current job, but she hopes the skills she is learning will help her advance in the organization. Angela is experiencing _________.
A. development B. orientation C. training D. practice E. tutoring
Lena buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,500 monthly salary to start at the beginning of the next month. The Statute of Frauds covers
A. the employment contract, and the laptop and MP3 purchases. B. the employment contract and the laptop purchase only. C. the employment contract only. D. the laptop and MP3 purchases only.
The Taft-Hartley Act protects the employer from unfair practices by the union
Indicate whether the statement is true or false
In this problem, we admit only one real-world factor in an otherwise ideal capital market. This real world factor is corporate taxation; specifically that interest payments on debt are deductible while dividend payments are not deductible
Suppose Delaware East, Inc has until now been an all-equity firm with a market value of $100 mn. Now, the firm decides to increase its leverage by issuing $40 mn. in debt, with the proceeds being used to pay a dividend to shareholders. Assuming that this debt will be a permanent part of the firm's capital structure, and that the firm's tax rate is 34%, and accounting for the deductibility of the interest on the debt, what is the total market value of the firm after the recapitalization? a. $113.6 mn. b. $100 mn. c. $73.6 mn. d. $13.6 mn. FORMULA: VL=VU+?cD