Quiz Ch 11 – Identifying Risks Unique to a Single Firm
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the term for risks that impact only one individual company?
What is the term for risks that impact only one individual company?
Which qualifies as a specific risk?
Which risk is considered specific to an auto manufacturer?
Which is expected to have the lowest exposure to macroeconomic risk?
What is the most probable outcome for the portfolio’s standard deviation when a stock investor, who already owns a diversified portfolio of 15 stocks, adds one more stock?
What happens as you progressively include more stocks in a portfolio?
What is the likely total return for an investor who sells Treasury bonds aftermarket interest rates have substantially increased from the initial purchase, where the bonds offered a 3% return over their 15-year life?
What does the historical trend of investors earning higher returns from common stocks compared to Treasury bills suggest about the relationship between risk and return?
Which statement about stock indexes is NOT accurate?
What does the statement “Dow up 14” signify?