The equity-premium puzzle refers to the surprising result that
A. stock prices are inversely related to interest rates.
B. the transactions costs for buying stocks may be as high as 5 percent of the total value of those stocks, greatly reducing the net returns to stocks.
C. equity prices are much too high when compared with the fundamental value of the stock market, as determined by using the present-value formula.
D. people will not pay to avoid risk in everyday situations, but when it comes to the stock market, people are willing to give up large potential returns to stocks in order to buy safer Treasury securities.
Answer: D
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Use the following information to calculate cash paid for wages and salaries: Salaries expense$182,000?Salaries payable, January 1 7800?Salaries payable, December 31 13,400?
A. $176,400. B. $182,000. C. $189,800. D. $187,600. E. $168,600.
Which assertion addresses whether the financial statements items are properly classified in the financial statements?
a. Completeness. b. Existence. c. Valuation. d. Presentation and Disclosure.
Hilda wishes to deposit an amount into her savings account that will enable her to withdraw $1,600 per year for the next four years. She should deposit an amount equal to $1,600 multiplied by the
A) present value of a single sum factor. B) present value of an ordinary annuity factor. C) future value of a single sum factor. D) future value of an ordinary annuity factor.
Organizational behavior comprises all of the following areas EXCEPT ______.
A. behavior in groups and teams B. understanding individuals in organizations C. the role of leaders as motivators D. the role of technology in organizations