1). Generally speaking, the P/E multiples are higher for firms with ____ expected growth rates and ____ expected required rates of retura.

lower; higher

b.

higher; higher

c.

higher; lower

d.

lower; lower

2).The risk of default on pledged accounts receivable is borne by the lender to whom the receivables are pledged.

True

False..

3).The relative amount of personal funds, or initial equity, an investor has to "put up" when purchasing stocks on margin is called the initial margin requirement.

True

False

4)The average return earned by a portfolio of stocks can be computed by summing the returns associated with the individual stocks and then dividing the result by the number of stocks in the portfolio.

True

False

5)The return on an investment is generated by any income produced by the investment and any change in the value, or the price, of the investment.

True

False