Quiz Ch 22 – False Statement on the Crash of 1987
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
What statement about the 1987 market crash is NOT true?
What statement about the 1987 market crash is NOT true?
What is the recommended approach to the discounted cash-flow (DCF) method in the presence of embedded options?
What is the term used to describe the behavior of making business decisions based on intuition rather than financial analysis?
Which characteristic is best illustrated by the tendency to take credit for decisions that have good outcomes, while blaming bad luck for decisions that turn out badly?
What behavioral characteristic is illustrated by a boss saying, “If I had wasted my time crunching numbers and doing analysis instead of listening to my instincts, that new office tower would never have been built!”?
What are the practical hurdles faced when employing real-options analysis?
Which examples illustrate expansion options in different industries?
Which scenario lacks a potential real option in project analysis?
Which options are considered real options?
Which scenario represents a real option?