In the results of the earliest estimations of the security market line by Miller and Scholes (1972), it was found that the average difference between a stock's return and the risk free rate was ________ to its nonsystematic risk and ________ to its beta.
A. positively related; negatively related
B. negatively related; positively related
C. positively related; positively related
D. negatively related; negatively related
E. not related; not related
C. positively related; positively related
The risk premium was positively related to both factors.
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Lorch Company exchanged an old asset with a $120,700 tax basis and a $155,000 FMV for a new asset with a $142,250 FMV and $12,750 cash.a. If the old asset and the new asset are like-kind properties, compute Lorch's realized and recognized gain and Lorch's tax basis in the new asset. b. How would your answers change if the new asset is worth only $116,000, and Lorch received $39,000 cash in the exchange?
What will be an ideal response?
Which of the following could be a component of other comprehensive income (loss)?
A) realized gains or losses from sale of investments in available-for-sale securities B) translation adjustments from converting the financial statements of a company's foreign operations into U.S. dollars C) gains (losses) on extraordinary items D) warranty liability adjustments
The division of buyers into groups based on lifestyle or personality characteristics is ________ segmentation
A) behavioral B) psychographic C) values D) demographic E) needs
Service businesses such as hotels, restaurants, and the like use a(n) ______ to schedule and manage customer demand for their services.
A. reservation system B. prioritization system C. appointment system D. capacity utilization system