The difference between the expected rate of return on a given risky asset and the expected rate of return on a less risky asset is known as the _____.
A. standard deviation of returns
B. variance of returns
C. actual rate of return
D. risk premium
E. risk-adjusted return
Answer: D
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Indicate whether the statement is true or false
Smith Forge is a successful wholesale provider of hand tools to small retail hardware stores in Florida. Six months ago, John, national sales director for Smith Forge, succeeded in securing a large contract to provide hand tools to HomeFix, a major national retail hardware chain. Furthermore, Smith Forge's contract with HomeFix allows Smith Forge to provide HomeFix with hand tools made of materials of lesser quality at a lesser price. Therefore, HomeFix can charge its retail customers a lower price, providing an attractive profit for both companies. Six months into the contract, both John and Smith Forge are disappointed that, although the hand tools meet the technical specifications of the contract between Smith Forge and HomeFix, the products are not selling. And, furthermore, HomeFix
is receiving nonstop complaints from its customers about the quality of the hand tools, prompting HomeFix to consider canceling its contract with Smith Forge. In retrospect, in its eagerness to land a large contract with HomeFix, John and Smith Forge failed to adequately consider the needs of the A. supplier. B. broker. C. media. D. distributor. E. final consumer.
Energy Unlimited, LP, is a limited partnership to which its partners, including Fink, have contributed capital. Energy's creditors include Graves Engineering, Inc. On Energy's dissolution, its assets will be distributed to pay
A. Fink and Graves proportionately. B. Fink first. C. Graves first. D. neither Fink nor Graves.
fundamental premise of the Burke–Litwin model is that ______.
A. planned change should flow from the bottom up B. planned change should flow from the top down C. planned change should flow from left to right D. planned change should flow from right to left