Quiz Ch 02 – T/F Insurance Companies and Risk Pooling
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Insurance companies offer a means for individuals to collectively pool their risks.
True or false: Insurance companies offer a means for individuals to collectively pool their risks.
True or false: The opportunity cost of capital is the expected return from similar-risk investments in financial markets for shareholders.
True or false: Primary markets exclusively host IPOs of large corporations.
True or false: Investors and businesses can effectively manage and redistribute risk through the utilization of financial markets and intermediaries.
True or false: Internal fund generation is particularly crucial for smaller businesses.
True or false: Private companies, similar to public ones, can employ their stock price as a performance metric.
True or false: House prices in the United States experienced a significant increase from June 2001 to June 2006.
Which investment fund grants tax advantages to individual investors?
Which country experienced the largest sovereign default in history as a result of the 2007-2009 financial crisis?
What does the term ‘opportunity cost of capital’ represent?