Quiz Ch 11 – T/F Risk-Return Relationship
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Typically, high-risk assets yield higher average returns compared to low-risk assets.
True or false: Typically, high-risk assets yield higher average returns compared to low-risk assets.
True or false: A substantial portion of the total market value of stocks traded in the United States is represented by the S&P 500.
True or false: The risk that persists within a thoroughly diversified stock portfolio is a specific risk.
What can be inferred about a stock if its returns are highly volatile?
What does the reduced historical return volatility of Treasury bonds compared to common stocks signify?
Which factor will increase the rate of return on World United stock without affecting its risk level, assuming all else remains constant?
What is the term for risks that are specific to a single firm?
Compute the implied return on a common stock issue given a dividend, the issue price of each share, and an annual dividend growth rate.
Your numbers will vary.