Which of the following statements is incorrect? Dividends can be included in the calcualtion of percentage...
Which of the following statements is incorrect?
Dividends can be included in the calcualtion of percentage returns for stock investments.
Market anomalies suggest that the stock markets are not perfectly efficient.
DB pension plans are less risky for employers compared to DC pension plans.
Realized returns are not necessarily equal to expected returns.
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Which of the following statements is incorrect?
Dividends can be included in the calcualtion of percentage...
Which of the following statements about defined contribution plans is incorrect? a. Defined benefit plans are...
Which of the following statements about defined contribution plans is incorrect? a. Defined benefit plans are used more often by large corporations than by small companies b. In a defined contribution plan, the employer must make larger-than-average contributions to the pension plan when investment returns have been below expectations. c. In general, employees can choose the investment vehicle under a defined contribution plan. Thus, highly risk-averse employees can choose low-risk investments, while more risk-tolerant employees can choose high-risk Investments d....
1. Which of the following statements is least likely to be correct? A. An investor's optimal...
1. Which of the following statements is least likely to be correct? A. An investor's optimal portfolio is an efficient portfolio that provides the highest level of utility. B. The optimal portfolio for an investor is at the point of tangency between the capital allocation line and the lowest possible utility. C. A risk averse investor will have an optimal portfolio to the left of the capital allocation line as compared to a less risk-averse investor. 2. Capital market line...
2. Which of the following statements is incorrect regarding the dividends received deduction? a. A corporation...
2. Which of the following statements is incorrect regarding the dividends received deduction? a. A corporation must hold stock for more than 90 days in order to qualify for a deduction with respect to dividends on such stock. b. The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated group c. If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%....
Which of the following statements is incorrect regarding the dividends received deduction? a. The taxable income...
Which of the following statements is incorrect regarding the dividends received deduction? a. The taxable income limitation does not apply if the normal deduction (i.e., 50% or 65% of dividends) results in a net operating loss for the corporatio Ob. If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%. c. The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated...
help with these mcq 23 Which of the following statements about duration is INCORRECT? a) Duration...
help with these mcq
23 Which of the following statements about duration is INCORRECT? a) Duration measures the average time between now and the time a bond's cash flows occur b) Bonds with longet duration have greater default risk c) The higher the face value the longer the duration, everything else equal d) The higher the coupon rate the lower the interest rate risk, everything else equal. (2 Marks) 24. Which of the following about yield to maturity (YTM) is...
My question is Q7 efficient markets hypothesis , thank you . Chapter 12 Some Lessons from...
My question is Q7 efficient markets hypothesis , thank you
.
Chapter 12 Some Lessons from Capital Market History 5. Efficient Marke officient Markets Hypothesis (LO4] A stock market analyst is able to identify mispriced stocks by comparing the average price for the last 10 days to the average ce for the last 60 days. If this is true, what do you know about the market? emistrong Efficiency (LO4] If a market is semistrong form efficient, is it also price...
which of the following statements is false? A. The realized return is the total return we...
which of the following statements is false? A. The realized return is the total return we earn from dividends and capital gains, expressed as a percentage of the initial stock price. B. The expected return is the return that actually occurs over a particular time period. C. The average annual return of an investment during some historical period is simply the average of the realized returns for each year. D. If you hold the stock beyond the date of the...
Which one of the following statements is correct concerning both the dollar return and the percentage...
Which one of the following statements is correct concerning both the dollar return and the percentage return on a stock investment? A) Without the size of an investment, the dollar return has less value than the percentage return. B) The dollar return is more accurate than the percentage return because the dollar return includes dividend income while the percentage return does not. C) The dollar return considers the time value of money while the percentage return does not. D) Dollar...
1. Which of the following statements is true? A. Stocks and bonds are traded in physical...
1. Which of the following statements is true? A. Stocks and bonds are traded in physical asset markets. B. Spot market transactions take place on a specific date in the future. C. Certificates of deposit are financial market assets. D. The NYSE is an example of a private market. 2. Which of the following has the highest historical average return? A. Large company stocks. B. Small company stocks. C, Corporate bonds. D. Government bonds. 3. Which of the following is...
1. Which of the following statements about lease financing is incorrect: Lease financing increases the risk...
1. Which of the following statements about lease financing is incorrect: Lease financing increases the risk for the firm. Lease financing can be considered a form of debt financing. Lease financing is subordinated to equity. Lease financing is typically considered a capital structure component. 2. Hybrid financing lowers the WACC for the firm. will result in dilution for the shareholders. is more risky then equity. Both A. and B. are correct. 3. What do lease financing and hybrid financing in...
Which of the following statements about defined contribution plans is incorrect? a. Defined benefit plans are used more often by large corporations than by small companies b. In a defined contribution plan, the employer must make larger-than-average contributions to the pension plan when investment returns have been below expectations. c. In general, employees can choose the investment vehicle under a defined contribution plan. Thus, highly risk-averse employees can choose low-risk investments, while more risk-tolerant employees can choose high-risk Investments d....
2. Which of the following statements is incorrect regarding the dividends received deduction? a. A corporation must hold stock for more than 90 days in order to qualify for a deduction with respect to dividends on such stock. b. The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated group c. If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%....
Which of the following statements is incorrect regarding the dividends received deduction? a. The taxable income limitation does not apply if the normal deduction (i.e., 50% or 65% of dividends) results in a net operating loss for the corporatio Ob. If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%. c. The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated...
help with these mcq
23 Which of the following statements about duration is INCORRECT? a) Duration measures the average time between now and the time a bond's cash flows occur b) Bonds with longet duration have greater default risk c) The higher the face value the longer the duration, everything else equal d) The higher the coupon rate the lower the interest rate risk, everything else equal. (2 Marks) 24. Which of the following about yield to maturity (YTM) is...
My question is Q7 efficient markets hypothesis , thank you
.
Chapter 12 Some Lessons from Capital Market History 5. Efficient Marke officient Markets Hypothesis (LO4] A stock market analyst is able to identify mispriced stocks by comparing the average price for the last 10 days to the average ce for the last 60 days. If this is true, what do you know about the market? emistrong Efficiency (LO4] If a market is semistrong form efficient, is it also price...
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