Question: Please,answer for all questions. 27. An efficient capital market is one in which security prices reflect publicly available information. a. True b. False 28. Markets

 Please,answer for all questions. 27. An efficient capital market is one

Please,answer for all questions.

27. An efficient capital market is one in which security prices reflect publicly available information. a. True b. False 28. Markets have been proven to be largely efficient. What does this suggest for the individual investor? a. Investors should not expect to generate long-term superior returns through their own research or that available from brokers or fundamental analysts. b. Investors should not expect to be able to pick experts (brokers, analysts, mutual funds) that can produce future returns that will beat the market averages over the long-term. c. Most investors are best served by investing in one or more low cost index funds. d. Keeping costs low is the single-best thing most investors can do to enhance their long-term investment performance. e. All of the above. 29. Market risk (or systematic risk) is a risk that influences a large number of assets. a. True b. False 30. Unsystematic risk is also known as unique risk or asset-specific risk. It affects at most a small number of assets. a. True b. False 31. Examples of systematic risk include? a. Inflation b. Interest Rates c. Economic Growth d. All of the above 32. Can diversification reduce systematic risk? a, Yes b. No 33. Systematic risk is also known as market risk. a. True b. False 34. What discount rate should be used in evaluating a potential new project? a. The firm's WACC b. The firm's discount rate c. The project's discount rate d. All of the above 35. Increasing leverage for firm does what? a. Increases the ROE and EPS of the firm. b. Increases the variability of ROE and EPS of the firm. c. Decreases the ROE and EPS of the firm

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!