Answer the following statements true (T) or false (F)
1. Bonds issued by the Federal government are riskier than bonds issued by corporations.
2. The key difference between bonds and stocks is that stocks' income streams are more predictable than those of bonds.
3. Stocks represent a debt, and buyers of stock expect to earn interest.
4. An investment's rate of return is positively related to the price paid for it.
5. Stock investors can earn a return from stocks only in the form of dividends.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
5. FALSE
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The solar window manufacturing industry is an example of _____ because it comprises many firms wanting to sell similar but differentiated products
a. monopolistic competition b. oligopoly c. monopoly d. oligopolistic competition
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50Which project has the lowest variance?
A. A B. B C. C D. D
What is a quota?
What will be an ideal response?
You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. If inflation over the year is 2%, what is the real interest rate you are paying?
A) 2% B) 2.5% C) 3% D) 5%