Finance questions

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unsystematic

A news flash about a single company just appeared that caused the company's stock to drop in value by 20% in one day. What type of risk does this news flash best represent?

Efficient market

Assume all stock prices reflect all relevent information on those stocks at all times. Which one of the following terms best defines the stock market under these conditions?

Investors panic causing security prices around the globe to fall precipitously.

Of the options listed below, which is the best example of systematic risk?

Volatility

Standard deviation is a measure of which one of the following?

The cost in the equity is unaffected by a change in the company's tax rate

The cacital structure of Pendekanti Products is 58 percent common stock, 2 percent preferred stock, and 40 percent debt. The firm maintains a dividend payout ratio of 24 percent has a beta of 108, and has an Incorse tax rate of 21 percent. Given this information, wich one of the following stat

Standard deviation of the firm's common stock

The weighted average cost of capital for a firm can depend on all of the following except:

Spreading an investment across many diverse assets will eliminate some of the total risk.

Which of the following statements best describes the principle of diversification?

Large cap stocks outperformed corporate bonds in an average year.

Which of the following statements is a correct reflection of the US stock market for the period 1926 until today?

it is highly dependent upon a company's tax rate.

Which of the following statements regarding the aftertax cost of debt is accurate?

Capital gains yield and total return

Which of the following yields on a stock can be negative?

Systematic risk

Which one of the following is a risk that is inherent in all stock portfolios?

Cost of Debt

Wright Market Research is able to borrow money at a rate of 6.8 percent per year. This interest rate is called the:


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