Chapter10 - 1. A growth stock is a stock that results in a...

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Unformatted text preview: 1. A growth stock is a stock that results in a high return with relatively low levels of risk. A. True. B. False. B. False See the Ch. 10 online learning quiz Question #3 Please go to the next question 2. 2. Over the past 76 years, which one of the following investments has provided the lowest return? A Treasury bills. B Large company common stocks. C. Small company stocks. D. Treasury Bonds. E. Corporate Bonds. A. Treasury bills. Ch. 10 See section 10.3, online learning quiz question #5 Please go to question 3. 3. Over the 1926-2001 period, the nominal risk premium on long-term corporate bonds has averaged _____ per cent per year. A. 0.0. B. 1.8. C. 2.2. D. 8.8. E. 13.4 C. 2.2 Ch. 10 See online learning quiz question #7. Please go to question 4. 4. ______ is the excess return required from an investment in a risky asset over that required from a risk-free investment. A. Standard deviation. B. Nominal return. C. Return on investment. D. Risk premium. D. Risk premium Ch. 10 see page 302 Please go to question 5. 5. Second lesson: The greater the potential reward, the greater is the ____? A. Penalty. B. Risk. C. Standard deviation. D. None of the above. B. Risk Ch. 10 page 308 class discussions ...
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