Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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When purchasing a Chinese internet stock with limited financial disclosure versus Apple shares...
Group of answer choices
You should expect a lower return given lower risk
You should expect a higher return given higher risk
You should expect a higher return for lower risk
Expectations are a bad think, just chill
You should expect a lower return given lower risk
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- Choose one appropriate statement. 1. The movement of stock prices have certain patterns, and investors can make profits by studying such patterns. 2. If a hedge fund manager believes that Toyota will going to outperform Honda she will short stocks of both companies. 3. When one share of Apple stock is being traded at $150, the stock market believes that you can always sell a share of Apple stock for at least $150 in the future. 4. O An undervalued stock should outperform the market in the long run. 5. O Diversification is not appropriate because it would prevent investors from capitalizing on the superior return that can result from a concentrated holding of the stock of one successful company.arrow_forwardE2arrow_forwardAs the economy goes through highs and lows, investors with stock in various companies can face significant risk, and significant benefits. How do you see the stock market affecting your own investing plans in the future? What types of risks do investors take? Do you have any companies you follow thru their stock prices?arrow_forward
- If a stock's Beta is negative, that suggests that... (choose the single best response) Group of answer choices None of these is true. The stock's returns have been consistently negative recently. No investors would want to buy the stock. Its returns are negatively correlated with the market. The stock's CAPM expected return is negative.arrow_forwardMicrosoft is the only stock in your portfolio. To reduce the risk you decide to add another stock in your portfolio. In fact you pick another stock that has a correlation coefficient of 1 with Microsoft. Which risk do you reduce by adding the second stock to your portfolio? O A. Systematic risk O B. Company specific risk O C. Risk free rase risk O D. Technology risk OE. None of the abovearrow_forwardPlease answer in 10 minute just need final answer not explanationarrow_forward
- 2arrow_forwardSuppose a public company compensates its risk averse managers with stock awards rather than stock options, and the company's stock price has fallen precipitously. In this setting, using stock awards will induce more risk taking by management versus the use of stock options. Question options: a) True b) Falsearrow_forward
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