ces Mailings Review View Help Tell me what you want to do A. 1.1. Normal No Spac... Heading 1 Heading 2 Title Paragraph Styles 35. In 1953 a controversial paper was written about stock prices What was the theme of this docurnent that created that controversy? A. Prices are seasonably based B. Patterns of stock prices can be determined with an acute level of sonny C. There were no pattems. This was called the "Random Walk D. If the price of a stock dedined one day, it would typically increase the following day E. Insider Trading 36. Investors react to stock price movements in almost reverse logic to price movement on any other products. What is meant by this statement? A. As the price of a stock increases investors will typically sell and reap the rewards immediately B. A rising stock price is typically accompanied by a flurry of buying of that stock When the price declines, investors often choose to sell. C. Demand as nothing to do with it D. Companies choose to increase their stock because it will prompt a higher value. 37. Holding everything else equal, what three methods of raising capital would be the LEAST favorable option to a corporation? A. Bond issues B. Selling Stock C. Stock Options D. Producing an operating profit 38 What type of investors hold the most equities in the USA? A Federal Government 8. Insurance Companies C. Retirement plans (Pension plans, 401K, etc) D. Foreign governments E. Hedge Funds 39 When evaluating different projects, it is important compare the risk profile of those projects. if the risk profile is similar, then you can use the same discount rate. However, if you are comparing to a riskier project which of the following apply? A Riskier projects would require a higher discount rate which would result in a lower NPV 8. Riskier projects would require a lower discount rate which would result in a higher NPV C. Riskier projects would require a lower discount rate which would resuit in a lower NPv D. Riskier projects would require a higher discount rate which would result in s higher NPV