Answer: FALSE
Explanation:
SD represents the variation in returns from the mean. Hence, the higher the SD higher the risk and lower the SD lower the risk.
True or False: Ceteris paribus, lower standard deviations represent greater risk.
Which of the following is TRUE about RISK & RETURN? O A. Ceteris paribus, higher standard deviations represent lower risk. O B. The terms "systematic" and "diversifiable" risk mean the same thing. O C. In the CAPM model, if the MRP is 8% and the risk-free rate is 2%, then the expected return on the market would be 6%. OD. For a holding period of 7 months, the annualized HPR would be greater than the 7-month HPR.
True or False. Ceteris paribus, an increase in the domestic price level increases the price of domestic goods increases their price relative to foreign goods resulting in a downward shift of aggregate expenditures and a leftward shift of the aggregate demand curve.
True or false: While constructing theories, economists use the ceteris paribus assumption. This assumption implies that factors other than those being considered do not change.
An increase in the price of inputs needed to produce a product wil, ceteris paribus, result in a O A loftward shift of the supply curve. OB. rightward shift of the supply curve. OD. movement down and to the left along the supply curve. A change in quantity supplied is reflected by a shift of the supply curve. OA. True OB. False
A5-6. Ceteris paribus, an increase in the domestic price level increases the price of domestic goods increases their price relative to foreign goods resulting in a downward shift of aggregate expenditures and a leftward shift of the aggregate demand curve. True, False Uncertain? Explain in detail.
3) Which of the following is TRUE regarding net income and cash flows? A) Ceteris paribus, cash will always move in the same direction as the change in depreciation expense. B) Accounts receivable appears in the expense section of the balance sheet. C) Increased borrowing increases a firm's Cash Flow to Creditors D) The focus in Finance is on net income rather than cash.
The z-score for a value two standard deviations below the mean is -2.0. True or false?
QUESTION 2 Select all of the following that are true regarding a fx transaction, ceteris paribus: O As a currency appreciates, exports are reduced An modest increase in a country's inflation rate will appreciate its currency A reduction in long term fiscal policy investment in a country will appreciate the currency As a currency appreciates, inflation due to imports is reduced A modestly more contractionary monetary policy will appreciate a country's currency
True or false? The lower the level of interest rates, the greater a bond's price sensitivity to interest rate changes.
True or False: In no case will creating portfolios of assets result in greater risk than that of the riskiest asset included in the portfolio.