For a risk averse investor, other things held constant, the higher a security's risk, the higher the return investors demand, and thus the less they are willing to pay for the investment.?

Answer the following statement true (T) or false (F)


True

A risk-averse person requires positive rewards to take on risks, and higher risks require higher rewards. When this concept is applied to investments, other things held constant, the higher a security's risk, the higher the return investors demand, and thus the less they are willing to pay for the investment. See 8-2: Expected Rate of Return

Business

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In auditing intangible assets, an auditor would determine if the valuation model used by the specialist is appropriate and consistent with GAAP in support of management's financial statement assertion of:

A. existence. B. rights and obligations. C. completeness. D. valuation and allocation.

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Identify a true statement about the Occupational Safety and Health Administration (OSHA) established by the U.S. Congress in 1970.

A. The integrative approach allowed OSHA to make trade-offs between health and economics. B. When OSHA was first established, regulations were aimed at achieving the safest feasible standards. C. It takes away the burden of proof of high health standards from industries. D. It holds that health and safety standards are required irrespective of the economic feasibility.

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In short-run decision making, the alternative with the lowest overall cost is always chosen

Indicate whether the statement is true or false

Business

If a bankruptcy attorney asks his paralegal to prepare the paperwork to start a bankruptcy filing for a client, that paralegal will be preparing a:

A) petition. B) complaint. C) deposition. D) response.

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