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.

Economics

You might also like to view...

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?

Economics

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?

Economics

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

Economics

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

Economics