In the universe of investment, risks are usually classified into two types; one is systematic risk and
Question:
In the universe of investment, risks are usually classified into two types; one is systematic risk and the other unsystematic one. However, a prominent theory says that in the efficient market, investors are only rewarded for systematic risk, because unsystematic risk can be eliminated by .
What is the best word for the blank?
Answer: [ ]
a. mutual fund
b. derivatives
c. diversification
d. Treasury Bonds
8. SolBridge corporation's total value is now $40million and is tax-exempt. And assume any debt proceeds are used to repurchase equity.
If the company sells $18.4 million in debt, the firm value will
a. increase
b. decrease
c. be the same
d. be unpredictable
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta