A decrease in dividend payment can be interpreted that:

A. Management believes the dividend payment can be sustained

B. There is an expectation of higher future dividends, and thus increasing present value

C. It is a signal of a healthy, growing firm

D. Management believes it can no longer sustain the current level of dividends.

Stock Repurchase can provide information of:

A. Management believe the current price is low

B. The stock price often decrease when repurchase announced

C. Management believes the current price is high

D. The stock price will not be affected by the announcement

Which of the following statement is NOT correct?

A. Individuals in upper-income tax brackets might prefer lower dividend payouts

B. Stock dividends increase the number of outstanding shares

C. Managers are reluctant to cut dividends

D. Most investors prefer low dividend payouts and will buy stock in those companies that offer low dividend payouts

From historical record, which of the following investment tool offer the highest return?

A. Large stocks

B. Small stocks

C. Long-term corporate bonds

D. Long-term government bonds

________ is the "extra" return earned for taking on risk.

A. Risk returns

D. Risk premiums

C. Risk factors

D. Risk diversification

The ________ is a symmetric, bell-shaped frequency distribution.

A. Variance

B. Standard deviation

C. Normal distribution

D. None of the above

________ and ________ measure the average of returns.

A. Variance, Standard deviation

B. Arithmetic mean, Geometric mean

C. Mean, Mode

D. Systematic mean, Unsystematic mean

________ risk can be diversified, but ________ risk cannot be diversified.

A. Systematic, Unsystematic

B. Unsystematic, Systematic

C. Systematic, Market

D. Market, Unsystematic