Which of the following statements is incorrect regarding Equity capitalization and an Equity index? O Larger...
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Which of the following statements is incorrect regarding Equity capitalization and an Equity index? O Larger firms are better able to diversify sources of finance and hence are less affected by credit crunch during market downturns. Small capitalized equities have lower allocation in a capitalized based equity index. O Large capitalized equities generally have lower risk and lower returns compared with small capitalized equities. Small firms are generally riskier than large firms since smaller firms are less diversified in the markets they operate in and/or have a smaller range of products/services they produce. Smaller firms are able to grow at faster rate by acquiring (taking over) their larger competitors. Which of the following statements is incorrect regarding Equity capitalization and an Equity index? O Larger firms are better able to diversify sources of finance and hence are less affected by credit crunch during market downturns. Small capitalized equities have lower allocation in a capitalized based equity index. O Large capitalized equities generally have lower risk and lower returns compared with small capitalized equities. Small firms are generally riskier than large firms since smaller firms are less diversified in the markets they operate in and/or have a smaller range of products/services they produce. Smaller firms are able to grow at faster rate by acquiring (taking over) their larger competitors.
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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