The market for a stock is said to be in equilibrium when the _____.
A. expected return on the stock is equal to its required return
B. expected return on the stock is equal to the risk-free rate of return
C. expected return on the stock is equal to the market risk premium
D. expected return on the stock is equal to the market return
E. expected return on the stock is equal to its historical return
Answer: A
You might also like to view...
FIFO results in the least amount of income before taxes, assuming a period of rising prices
a. True b. False Indicate whether the statement is true or false
Using the information below, answer the following questions:
a) Using equation 8-10 from the book, how much money will you need to have accumulated at the time of retirement to be able to meet your income needs during retirement?
b) If you were to make a single lump sum investment today, how much would you need to invest annually to meet your goal at the time of retirement?
c) If you were to invest an equal dollar amount each year, how much would you need to invest annually to meet your goal at the time of retirement?
d) Assume that your employer will raise your annual wage every year by at least the rate of inflation so that your retirement savings can also increase proportionally. Use equation 8-14 to determine the first required annual investment.
e) To illustrate the importance of the return on your investment, set up a scenario analysis that shows your investment required today, the annual investment required, and the first annual investment required considering savings as graduate annuities. Assume four scenarios where your rate of return before retirement is 5%, 7%, 10%, and 15%. How likely do you think it is that you will be able to earn 10% or 15% per year on your investments? What do these results suggest to you about the importance of financial literacy?
Answer the following statements true (T) or false (F)
1. Because of the risk of fraud, electronic invoices and electronic receiving reports are seldom used in accounting information systems. 2. In an accounting information system, outputs are the reports used for decision making, which include the financial statements. 3. In a manual accounting information system, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint. 4. The main computer where data are stored, which can be accessed from many different computers, is known as software. 5. A computerized system uses software to process transactions. Thus employees are no longer required to manually journalize and post transactions to the accounts.
Explain in detail why a large proportion of new product introductions fail?
What will be an ideal response?