Quiz Ch 12 – Risk Premium Comparison: 1926-2019 Performance
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Which investment choice had the highest risk premium during the period of 1926-2019?
Which investment choice had the highest risk premium during the period of 1926-2019?
Which securities category had the lowest average risk premium for the period 1926-2019?
What was the approximate actual real return of large-company stocks based on historical data from 1926-2019?
Why is the cash flow from assets (CFA) adjusted when valuing a firm?
In a firm with multiple divisions of similar nature but varying degrees of risk, which of the following options would be the most appropriate and relatively easy method for assigning discount rates to numerous proposed investments?
What was the average annual percentage point difference between the returns of small-company stocks and large-company stocks over the period 1926-2019?
Which securities had the highest average annual return for the period 1926-2019?
What was the average inflation rate between 1926 and 2019?
For Black Stone Furnaces’ new facility investment, which factor primarily determines the cost of capital?
When evaluating a potential expansion into new home construction, which cost of capital should Boone Brothers, a remodeling and window replacement company, use as the required return for the project?