FINANCE

 

1. Which of the following is a true statement?
A. The risk and return that a firm experienced in the past is also the risk level for its future.
B. Firms can quite possibly change their stocks’ risk level by substantially changing their business.
C. If a firm takes on riskier new projects over time, the firm itself will become less risky.
D. If a firm takes on less risky new projects over time, the firm itself will become more risky.

 

2. This is the average of the possible returns weighted by the likelihood of those returns occurring.
A. efficient return
B. expected return
C. market return
D. required return

 

3. The set of probabilities for all possible occurrences.
A. probability
B. probability distribution
C. stock market bubble
D. market probabilities

 

4. This is typically considered the return on U.S. government bonds and bills and equals the real interest plus the expected inflation premium.
A. required return
B. risk-free rate
C. risk premium
D. market risk premium

 

5. This is the reward investors require for taking risk.
A. required return
B. risk-free rate
C. risk premium
D. market risk premium

 

6. This is the reward for taking systematic stock market risk.
A. required return
B. risk-free rate
C. risk premium
D. market risk premium

 

7. This model includes an equation that relates a stock’s required return to an appropriate risk premium:
A. asset pricing
B. behavioral finance
C. beta
D. efficient markets

 

8. The asset pricing theory based on a beta, a measure of market risk.
A. Behavioral Asset Pricing Model
B. Capital Asset Pricing Model
C. Efficient Markets Asset Pricing Model
D. Efficient Market Hypothesis

 

9. In theory, this is a combination of securities that places the portfolio on the efficient frontier and on a line tangent from the risk-free rate.
A. efficient market
B. market portfolio
C. probability distribution
D. stock market bubble

 

10. The use of debt to increase an investment position.
A. behavioral finance
B. financial leverage
C. probability
D. stock market bubble

 

11. Which of these is the line on a graph of return and risk (standard deviation) from the risk-free rate through the market portfolio?
A. Capital Asset Pricing Line
B. Capital Market Line
C. Efficient Market Line
D. Efficient Market Hypothesis

 

12. A measure of the sensitivity of a stock or portfolio to market risk.
A. behavioral finance
B. beta
C. efficient market
D. hedge

 

13. Similar to the Capital Market Line except risk is characterized by beta instead of standard deviation.
A. Market Risk Line
B. Probability Market Line
C. Security Market Line
D. Stock Market Line

 

14. Which of these is the measurement of risk for a collection of stocks for an investor?
A. beta
B. efficient market
C. expected return
D. portfolio beta

 

15. Which of the following is NOT a necessary condition for an efficient market?
A. Many buyers and sellers.
B. No prohibitively high barriers to entry.
C. Free and readily available information available to all participants.
D. No trading or transaction costs.

 

16. The stocks of small companies that are priced below $1 per share.
A. bargain stocks
B. hedge fund stocks
C. penny stocks
D. stock market bubble stocks

 

17. A theory that describes the types of information that are reflected in current stock prices.
A. asset pricing
B. behavioral finance
C. efficient market hypothesis
D. public information

 

18. This is data that includes past stock prices and volume, financial statements, corporate news, analyst opinions, etc.
A. audited financial statements
B. generally accepted accounting principles
C. privately held information
D. public information

 

19. This has not been released to the public, but is known by few individuals, likely company insiders.
A. audited financial statements
B. restricted stock
C. privately held information
D. insider trading

 

20. Investor enthusiasm causes an inflated bull market that drives prices too high, ending in a dramatic collapse in prices.
A. behavior finance
B. efficient market
C. privately held information
D. stock market bubble

 

21. The study of the cognitive processes and biases associated with making financial and economic decisions.
A. asset pricing model
B. behavioral finance
C. efficient market hypothesis
D. stock market bubble

 

22. Shares of stock issued to employees that have limitations on when they can be sold.
A. executive stock options
B. privately held information
C. restricted stock
D. stock market bubble

 

23. Special rights given to some employees to buy a specific number of shares of the company stock at a fixed price during a specific period of time.
A. executive stock options
B. privately held information
C. restricted stock
D. stock market bubble

Order now and get 10% discount on all orders above $50 now!!The professional are ready and willing handle your assignment.

ORDER NOW »»