Market risk refers to the tendency of a stock to move with the general stock market. A stock with above-average market risk will tend to be more volatile than an average stock, and its beta will be greater than 1.0.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Briefly explain how brands influence purchase decisions in consumer markets
What will be an ideal response?
Which of the following is/are true?
a. An employer must recognize changes in the funded status of a defined benefit retirement plan on its balance sheet each period. b. U.S. GAAP and IFRS do not require the employer to recognize changes in the funded status of a defined benefit retirement plan immediately in net income. c. Changes in the net funded status of a defined benefit retirement plan because investment performance differs from expectations, or because of changes in actuarial assumptions, or in the retirement benefit formula, initially affect other comprehensive income. d. Firms amortize the amounts in Other Comprehensive Income over the expected period of benefit as an adjustment to retirement plan cost. e. all of the above
If bonds are issued at a premium, the stated interest rate is
A) higher than the market rate of interest. B) lower than the market rate of interest. C) too low to attract investors. D) adjusted to a higher rate of interest.
Which of the following is classified as a capital investment decision?
A) Purchase of a building B) Purchase of inventory C) Paying interest on bonds issued D) Purchase of a 6-month treasury bill