When the risk factor associated with a stock increases, the expected rate of return increases.
Answer the following statement true (T) or false (F)
False
When the risk factor associated with a stock increases, the expected rate of return decreases.
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What is the relationship between the gross domestic product of a country and the level of life satisfaction in the country?
What will be an ideal response?
Suppose you need an estimate of future inflation (to decide, for example, whether a particular security is a good investment). How might you formulate a rational expectation?
What will be an ideal response?
If the tax function is given by T = – 20 + 0.1Y the average tax rate would
a. be 0.1. b. fall as income falls. c. vary negatively with income. d. be – 20 + 0.1. e. none of the above
A nation's real GDP was $250 billion in 2013 and $265 billion in 2014. Its population was 120 million in 2013 and 125 million in 2014. What is its real GDP per capita in 2014?
A. $2,120 per person B. $212 per person C. $21,200 per person D. $205 per person