Quiz Ch 12 – Abnormal Returns and Macro Forecasting
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
How can you generate abnormal returns on your investments through macro forecasting?
How can you generate abnormal returns on your investments through macro forecasting?
What accurately describes a levered firm?
What are potential adjustments to asset allocation when expecting an economic recession, such as selling __________ and buying __________?
Which statement is FALSE? When comparing MACRS accelerated depreciation to straight-line depreciation for a profitable firm, MACRS accelerated allowances result in:
What is the primary use of Economic Value Added (EVA) within a firm?
When might the company cost of capital be an unsuitable discount rate for a capital budgeting proposal?
What is the risk premium on a U.S. Treasury bill given the following financial data: a risk-free rate of 2.2%, the inflation rate of 1.9%, and market rate of return of 6.8%?
How is Economic Value Added (EVA) calculated?
The calculation of Economic Value Added (EVA) is expressed through which formula?
How is a stock’s risk premium determined?