PracticeChap10_11_12_001

PracticeChap10_11_12_001 - P ractice Questions for Chapters...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10 1. The excess return required on a risky investment over that of a risk-free investment is called the: a. inflation premium. b. required return. c. real return. d. average actual return. E . risk premium. 2. The return on which one of the following is used as the risk-free rate of return? a. long-term corporate bonds b. long-term government bonds c. short-term corporate bonds D . U.S. Treasury bills e. the Consumer Price Index 3. If the financial markets are efficient then: a. stock prices should remain constant. b. stock prices should increase or decrease slowly as new events are analyzed and the information is absorbed by the markets. c. an increase in the value of one security should be offset by a decrease in the value of another security. d. stock prices will only change when an event actually occurs, not at the time the event is anticipated. E
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/09/2011 for the course BUSINESS 300 taught by Professor N/a during the Spring '09 term at DeVry Chicago.

Page1 / 4

PracticeChap10_11_12_001 - P ractice Questions for Chapters...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online