Chapter 12 Test A

Chapter 12 Test A - Chapter 12 Test A 1.Security investors incur varying degrees of risk Business risk is related to a price level changes in the

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Chapter 12 Test A 1.Security investors incur varying degrees of risk. Business risk is related to a. price level changes in the economy. b. investor behavior in the market. c. the debt-to-equity ratio of the firm. d. the potential success or failure of the firm. e. security price fluctuations. 2. In which of the following type of investment is the most liquidity risk? a. Common stock b. Corporate bonds c. Treasury bonds d. Land e. Mutual fund shares 3. Which of the following types of risk affect owners of fixed income securities more than owners of equity securities a. business risk b. financial risk c. market risk d. purchasing power risk e. none of the above 4. Companies with a great deal of long-term debt would rate fairly high in ____ risk. a. market b. event c. business d. financial e. liquidity 5. ____ risk results from the behavior of investors in the securities market a. Business b. Financial c. Market d. Purchasing power e. Interest rate 6. Base upon the following information: CUR NET BONDS YIELD VOLUME CLOSE CHANGE POP 9-3/4 10 ? 70 110-1/2 -1/2 POP closed on this trading day at a price of a. $ 975. b. $1,000.
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This note was uploaded on 03/15/2011 for the course ECON 201 taught by Professor Sung during the Spring '08 term at Indiana.

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Chapter 12 Test A - Chapter 12 Test A 1.Security investors incur varying degrees of risk Business risk is related to a price level changes in the

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