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Stocks differ from bonds because:

all of the above

beta is

all the above

____ means that the percentage increase in dividends is the same each year

constant growth

the ____ is the regular intrest payment of a bond

coupon

When the ___ is less than the yield to maturity, the bond sells at a/the ___ the par value.

coupon rate, discount to

the terms ____ and _____ mean the same thing

diversifiable risk; unsystematic risk

the practice of not putting all your eggs in one basket is an illustration of

diversification

the holder of preferred stock is entitled to a constant dividend ____

every period

which of the statements is true

investors want to maximize return and minimize risk

A bond is a ________ instrument by which a borrower of funds agrees to pay back the funds with interest on specific dates in the future.

long term debt

a beta of 1.0 is the beta of the ___ while a beta of 0.0 is the measure for

market; risk free security

the ____ is the expiration date of the bond

maturity date

_____ has to do with the speed an accuracy of processing a buy or sell order at the best available price

operational efficiency

the value of a financial asset is the _____

present value of all of the future cash flows that will be received

zerio coupon bonds are

priced at a deep discount

the ____ is the market of first sale in which companies sell their authorized shares to the public

primary market

the _____ is the intercept of the security market line

risk free rate

in ____ current prices already reflect the price history and volume of the stock as well as all available public information

semi strong form efficient markets

junk bonds are a street name for _____ grade bonds

speculative

____ is risk that cannot be diversified away

systematic risk

which of the following investments is considered to be default risk free

treasury bills

in ___ current price reflect the price history and trading volume of the stock. it is of no use to chart historical stock prices to predict future stock prices such that you can identify mispriced stocks and routinely outperform the market.

weak form efficient markets

the _____ is the yield an individual would receive if the individual purchased bond today and held the bond to end of its life

yield to maturity


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