Beta is a/an ________ measure of risk and assumes that investors hold a ________ portfolio
A) absolute; well-diversified
B) relative or comparative; risk-free
C) relative or comparative; well-diversified
D) absolute; risk-free
C
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Which of the following retailers is the least dependent on traffic counts?
A. Old Navy B. Home Depot C. Macy's D. 7-Eleven E. Hot Wings
A contingent liability should be recorded when
a. any lawsuit is actually filed against a company. b. it is certain that funds are available to pay the amount of the claim. c. it is probable that a liability has been incurred even though the amount of the loss cannot be reasonably estimated. d. the amount of the loss can be reasonably estimated and it is probable prior to issuance of financial statements that a liability has been incurred.
Which of the following statements is CORRECT? Assume a company's target capital structure is 50% debt and 50% common equity.
A. The WACC is calculated on a before-tax basis. B. The WACC exceeds the cost of equity. C. The cost of equity is always equal to or greater than the cost of debt. D. The cost of reinvested earnings typically exceeds the cost of new common stock. E. The interest rate used to calculate the WACC is the average after-tax cost of all the company's outstanding debt as shown on its balance sheet.
In the absence of a specific law to the contrary, employers have the right to fire workers for off-duty conduct
a. True b. False Indicate whether the statement is true or false