True,
One of the highest risk assets have been small-cap stocks and they have provided the highest average returns to date.
Looking at capital market history, assets with the highest risk always have the highest average returns. True False
true or false: the market risk premium is always positive.
Intangible assets are always carried (appear) on the balance sheet at their current market value. True False
1. true or False: Chemical manufacturer DuPont has approximately $0.94 in assets for every dollar in sales. According to asset intensity for every $100 increase in sales, the firm would need about $94 of additional assets. 2. True or False: When venture capitalists invest in a start-up business, they contribute debt capital. 3. True or False: Treasury bills are short-term securities issued by the United States government. 4. True or False: Both debt and equity capital have set maturities. 5....
Arithmetic returns are always greater than geometric returns. Select one: True False
In simple terms, the equity risk premium puzzle is that looking over long-time series of returns "the returns to investors on equities have been on average so much higher than returns on U.S.Treasury Bonds, that it is hard to explain why investors buy bonds, even after allowing for a reasonable amount of risk aversion"(Wikipedia entry on equity risk premium). This implies that, other things being equal, a steep drop in overall share price makes buying shares even more attractive to...
The Efficient Market Hypothesis says that on average, investors are not likely to consistently earn returns above those expected for the risk. True or False?
.True or False: The expected rate of return is the weighted average of the possible returns for an investment. True or False: ABC Corporation issued and sold 10 shares of stock to Irene Investor, a private individual. This represents a secondary market transaction. 3. True or False: ABC Corporation issued and sold 10 shares of is represents a stock to Irene Investor, a private individual. Th secondary market transaction True or False: Rewarding executives for increasing quarterly earnings will motivate...
If securities returns are uncorrelated, diversification will not reduce risk. true or false, explain
Is it true or false that given two gambles, a risk averter will always choose the one with the smaller variance, no matter the expected return? PLEASE SHOW ALL WORK, NO EXCEL
True or false? The objective function of the risk and return model is a 25 4 quadratic function. The statement is true. The statement is false. True or false? For the risk and return model the mean return is the simple 25 9 sum of individual returns. The statement is true. The statement is false. True or false? Quadratic math programming models have quadratic 25 4 objective functions and linear constraints. The statement is true. The statement is false. True...