If the risk associated with a company goes down, you would expect the price of its stock to

A. rise.
B. fall.
C. be unaffected.
D. fall to zero.


Answer: A

Economics

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All of the following are characteristics of debit cards EXCEPT:

A) payments are deferred until a later date B) they can be used like checks C) they eliminate the problem of trust since the bank's computer authorizes the transaction D) when used at a store, his bank instantly credits the store's account with the amount and deducts it from his account.

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Most firms on the Fortune 500 list are

a. monopolies b. monopolistically competitive c. oligopolies d. imperfectly competitive e. perfectly competitive

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The reversal of fortune can be attributed to the fact that:

A) economic institutions in European colonies were inclusive in all nations. B) economic institutions in European colonies were extractive in prosperous nations and inclusive in other nations. C) economic institutions in European colonies were extractive in all nations. D) economic institutions in European colonies were inclusive in prosperous nations and extractive in other nations.

Economics

Compared to owners, employees receive a large fraction of their incomes from their employers and are consequently dependent on the fortunes of that company in the marketplace. From a ‘risk-sharing' perspective, an employee tends to prefer:

A. a flat salary. B. year-end based performance pay. C. output-based incentive pay. D. commission-based incentive pay.

Economics