The price of return top top which kind of security is typically used as the risk-free rate of return?a. Lengthy term treasury bondsb. Long term corporate bondsc. Treasury billsd. Intermediate term treasury bondse. Intermediate term this firm bonds
To convince investor to accept greater volatility, girlfriend must:a. Diminish the threat premiumb. Increase the risk premiumc. Decrease the real returnd. Diminish the risk cost-free ratee. Increase the risk complimentary rate
Small-company stocks, together the ax is provided in the textbook, are ideal defined together the:a. 500 newest enterprise in the USb. Providers whose share trades OTCc. Smallest 20 percent of the companies provided on the NYSEd. Smallest 25 percent of the companies noted on NASDAQe. Service providers whose stock is provided on NASDAQ
Assume that last year T-bills changed 2.8 percent if your invest in large-company stocks earned an median of 7.6 percent. Which among the complying with terms describes the difference in between these two prices of return?a. Threat premiumb. Geometric mean returnc. Arithmetic median returnd. Typical deviatione. Variance
Which one of the complying with categories the securities had the many volatile annual returns end the duration 1926-2016?a. Lengthy term this firm bondsb. Huge company stocksc. Intermediate term government bondsd. United state treasury billse. Little company stocks
Generally speaking, i beg your pardon of the following ideal correspond come a wide frequency distribution?a. High traditional deviation, low rate of returnb. Low rate of return, big risk premiumc. Little risk premium, high price of returnd. Small risk premium, low traditional deviatione. High traditional deviation, large risk premium
Standard deviation is a measure up of which among the following?a. Median rate that returnb. Volatilityc. Probabilityd. Danger premiume. Real returns
Estimates of the price of return top top a security based on the historical arithmetic median will more than likely tend come _____ the meant return because that the long-term and estimates utilizing the historic geometric median will more than likely tend to _____ the expected return because that the short-terma. Overestimate; overestimateb. Overestimate; underestimatec. Underestimate; overestimated. Underestimate; underestimatee. That s right estimate; that s right estimate
The average compound return earned every year end a multiyear duration is dubbed the _____ median return.a. Arithmeticb. Standardc. Variantd. Geometrice. Real
The return earn in an average year over a multiyear period is referred to as the _____ average return.a. Arithmeticb. Standardc. Variantd. Geometrice. Real
Assume all stock prices relatively reflect all of the accessible information ~ above those stocks. Which among the complying with terms best defines the stock market under these conditions?a. Riskless marketb. Evenly dispersed marketc. Zero volatility marketd. Blume"s markete. Efficient funding market
Which among the adhering to is the most most likely reason why a share price can not react at all on the job that brand-new information pertained to the stock"s issuer is released? i think the sector is semistrong kind efficient.a. Firm insiders were aware of the info prior to the announcement.b. Investors do not pay attention to everyday news.c. Investors tend to overreact.d. The news was positive.e. The information was expected.

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Which among the complying with statements is correct concerning market efficiency?a. Actual asset markets are much more efficient than financial markets.b. If a market is efficient, arbitrage methods should it is in common.c. In an efficient market, some market participants will have actually an advantage over others.d. A firm will typically receive a same price when it issues brand-new shares of share if the market is efficient.e. Brand-new information will progressively be reflected in a stock"s price come avoid any sudden price changes in an efficient market.
d. A certain will generally receive a same price as soon as it issues new shares of share if the industry is efficient.

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Efficient financial sectors fluctuate repetitively because:a. The markets are continually reacting to old details as that information is absorbed.b. The sectors are continually reaction to brand-new information.c. Arbitrage trade is limited.d. Current trading equipment require human intervention.e. Investments create varying level of net existing values.
Inside information has the the very least value once financial sectors area. Weak type efficientb. Semiweak form efficientc. Semistrong form efficientd. Strong type efficiente. Inefficienct
The U.S. Securities and Exchange Commission regular charges individuals with insider trading and also claims those individuals have made unfair profits. Given this, you would be many apt come argue that the sectors are less than _____ type efficient.a. Weakb. Semiweakc. Semistrongd. Stronge. Perfect
Suppose girlfriend bought a $1,000 challenge value bond v a coupon rate of 5.6 percent one year ago. The acquisition price was $987.50. You sold the bond this particular day for $994.20. If the inflation rate last year was 2.6 percent, what was your exact real rate of return top top this investment?a. 4.88 percentb. 5.32 percentc. 3.65 percentd. 3.78 percente. 4.47 percent
Christina to buy 500 share of share at a price the $62.30 a share and sold the shares because that $64.25 each. She additionally received $738 in dividends. If the inflation rate was 3.9 percent, what was her precise real price of return top top this investment?a. 4.20 percentb. 1.54 percentc. 1.60 percentd. 3.95 percente. 5.50 percent
You bought among Shark Repellant"s 6 percent coupon binding one year back for $867. These bonds pay yearly payments, have actually a face value the $1,000, and also mature 12 years from now. Intend you decide to market your bond today as soon as the compelled return on the bond is 7.4 percent. The inflation price over the previous year was 2.9 percent. What was your complete real return ~ above this investment?a. 6.48 percentb. 6.61 percentc. 8.18 percentd. 7.44 percente. 9.70 percent
A stock had actually returns that 5 percent, 14 percent, 11 percent, −8 percent, and 6 percent over the past five years. What is the traditional deviation of these returns?a. 7.74 percentb. 8.21 percentc. 9.68 percentd. 8.44 percente. 7.49 percent
A stock had annual returns the 5.3 percent, −2.7 percent, 16.2 percent, and 13.6 percent end the past 4 years. Which one of the following best describes the probability the this share will create a return of 20 percent or much more in a solitary year?a. Less than 2.5 percent but more than 0.5 percentb. An ext than 16 percentc. Less than 0.5 percentd. Less than 1 percent but much more than 0.5 percente. Much less than 16 percent but an ext than 2.5 percent
A stock had returns of 13 percent, 11 percent, 8 percent, 14 percent, −9 percent, and also −5 percent over the previous six years. What is the geometric median return for this time period?a. 4.93 percentb. 4.67 percentc. 5.13 percentd. 5.39 percente. 5.26 percent
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Online Learning facility to companion Essentials that Investments8th EditionAlan J. Marcus, Alex Kane, Zvi Bodie
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